October 11-13
Pakistan has now asked Iran for $2 billion in financing to build its side of the controversial gas pipeline, Islamabad’s petroleum minister said Tuesday.
The pipeline was officially inaugurated in March but the work did not continue after the formal ceremony because Pakistan doesn’t have the money for the project.
The Iranian side of the pipeline is almost complete, but Pakistan has run into repeated problems paying for the 780-kilometer (485-mile) section to be built on its side of the border.
Pakistani Petroleum Minister Shahid Khaqan Abbasi said Tuesday the preparatory work was complete but Pakistan had asked Iran to provide $2 billion for the construction work.
“All these issues will be discussed in a meeting which we have requested, but so far there is no reply from the Iranian side,” Abbasi said.
Last month, the Pakistani English-language daily The News reported that Russia had offered to finance the construction. The request to Iran suggests that Pakistan doesn’t see that as very viable.
US officials have warned that the project would risk triggering sanctions aimed at Iran. That has discouraged banks and lenders from getting involved.
But Abbasi denied coming under pressure from Washington since Prime Minister Nawaz Sharif came to power in the May general election. “Americans have not so far talked about this pipeline with us at any level,” he said.
Asked if Pakistan was hoping to complete the project before the December 2014 deadline, Abbasi replied: “Anything is possible, if we have the resources. It depends on the financing and availability of the machinery.” Iran has repeatedly told its public that the project is on schedule for completion then.
Abbasi said that, due to gas shortages in winter, all compressed natural gas (CNG) stations in Punjab province will be shut down from November to January.
Many Pakistanis have converted their cars to run on CNG, depending on it as a cheaper alternative to gasoline and diesel.
“Our first priority are domestic [home heating] consumers during the winters, so there will be no gas for motor transport in Punjab,” Abbasi said.
