IRAN *- Ambassador of Iran to Pakistan Mehdi Honardoost says Iran-Pakistan (IP) gas pipeline is a critical project to fulfill Pakistan’s energy needs and will completely change the face of country’s economy.*
He made the remarks while answering a question at a seminar on ‘Pakistan’s Geo-strategic requirements: Strategic alliances or partnerships’ organized by Pakistan House, an independent institute of international and cultural affairs in Islamabad.
“IP can be a game changer,” the ambassador said.
He added that the IP gas pipeline project does not fall under sanctions adding that Iranian gas can change the face of the economy of Pakistan. “We are looking to our Pakistani brothers to complete this project,” he said.
Mehdi Honardoost expressing his views said both countries have large number of youngsters who need jobs and IP can help provide good number of jobs. “IP can also help Pakistan to improve its industry,” he noted.
Pakistan and Iran have already agreed to open up and review the gas sales-purchase agreement (GSPA) inked between the two in 2009.
The IP project was to be implemented under segmented approach which means that Iran had to lay down the pipeline on its side and Pakistan had to build the pipeline in its territory.
The project was to be completed by December 2014 and come on stream from January 1, 2015. Under the penalty clause it was agreed by both sides that if Pakistan fails to have intake of Iranian gas from January 1, 2015, it will have to pay $01 million per day as penalty.