Petroleum Secretary Imtiaz Qazi said Friday, “The government will seek assistance from China for 32 projects in different sectors,” with one of the projects being the Iran-Pakistan pipe.
Pakistan and Iran signed the agreements for the pipeline almost a year ago, but Pakistani officials only later admitted that they didn’t have the capital required to build the pipeline on the Pakistani side of the border. Iran has said it has almost finished the pipeline on its side.
According to the Daily Times of Pakistan, Qazi said the contract with Iran was a “take-or-pay” agreement under which Pakistan must pay for the minimum contracted gas supply even if it doesn’t take the gas. Qazi said that take-or-pay provision kicks in December 31, 2014. After that date, Pakistan will be paying Iran $7 million to $8 million every day—even if the pipeline hasn’t been built.
