ISLAMABAD - New developments have been reported in the strategic gas pipeline project between Pakistan and Russia .
Pakistan and Russia have decided to extend the validity of the North-South gas pipeline deal.
The $2-billion deal was signed in October 2015 and was set to expire today (October 16, 2018).
The two countries extended its validity during Pakistan delegation’s current visit to Russia . A commercial deal for the project has also been finalised during the visit.
Under the agreement, Pakistan’s Inter State Gas System (ISGS) will collaborate with Russia’s state-owned RT Global Resources.
The agreement requires Pakistan to allow RT Global to lay the pipeline without inviting any bidder. Russia in return will lend Pakistan $2-billion.
Under this agreement, RT Global would fund 85 per cent of the project’s cost while Islamabad will contribute 15 per cent of equity.