Pakistan, Iran to ink crucial agreements on IPI pipeline

Pakistan and Iran will sign two crucial agreements on the multi-billion dollar gas pipeline project, which also involves India within two months.

A gas-purchase pact and an inter-governmental framework agreement will be signed in two months by the two countries.

Pakistan will also engage an international consultancy firm to conduct a feasibility study on its section of the project.

The firm will carry out a feasibility study within Pakistan's borders and submit a report by the first quarter of next year, Dawn News channel reported today.

Pakistan and Iran recently held two-day technical-level talks here on the gas purchase agreement and other legal aspects of the project.

A working group of Iran and Pakistan will meet in Tehran on December 17 to follow up on the technical talks. "India is not a part of the dialogue at this stage but we hope it will join the discussions later," Pakistan's Foreign Office spokesman Mohammad Sadiq said yesterday.

Officials were quoted by Dawn News as saying today that 40 per cent of the construction of the pipeline within Iran had been completed to supply gas to Pakistan's eastern provinces.

Indian government sources have said the country's participation in the project hinges on the transit fee charged by Pakistan for Iranian gas. They said the transit fee currently sought by Pakistan "is too high".