Summary FO brushes aside US pressure saying PIGPP was very vital to Pakistan’s energy crisis.
ISLAMABAD (Online): President Asif Ali Zardari will leave for Iran on Tuesday to sign Pak-Iran Gas Pipeline Project (PIGPP) agreement.
As per media reports, President Zardari will proceed to Tehran to sign the accord related to PIGPP despite mounting pressure from US against entering into such agreement with Iran.
In line with the agreement, Iran will extend loan amounting to 500 million dollars to Pakistan for laying pipeline within its boundaries. Availability of investors has also emerged a major issue with regard to this project for fear of imposition of economic restrictions by US.
The Foreign Office (FO) spokesman during his weekly press briefing on Thursday had brushed aside US pressure saying that PIGPP was very critical to Pakistan. Country was facing energy crisis at present and taking forward PIGPP was in the national interest, he added.
President Asif Ali Zardari will not only sign agreement but Iran will also build an oil refinery in Gwadar. Refinery will refine 400000 barrel oil daily.
Both the countries will ink the formal agreement in regard to this project during this proposed visit of President Zardari to Iran.
US state department said on Saturday Pakistan was having better option than PIGPP to meet its energy needs. However Pakistan has put up resistance to US pressure so far.
During last week Iranian oil minister had visited Islamabad and announced his country would start supplying gas to Pakistan from December, 2014.
Experts are of the view that President Zardari’s prospective visit to Iran would play a crucial role in determining Iran role in meeting energy requirements of Pakistan.
