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Iran offers to finance entire IP gas pipeline - Tehran Times

Secur

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With no country or company willing to take part in a project that the U.S. opposes, Tehran has offered to lay the entire Iran-Pakistan (IP) gas pipeline project.

Pakistan has pitched investment proposals to China and Russia but no major progress has been made due to U.S. pressure. Both countries had earlier offered to provide complete financing for the project in case the contract was awarded to them without a bidding process.

The project, if completed, will supply 750 million cubic feet gas per day (bcfd) of gas to the energy deficit country.

The U.S. has warned Pakistan and companies assisting the project of possible sanctions if they go ahead.

State-owned National Bank of Pakistan (NBP) and Oil and Gas Development Company Limited (OGDC) walked away from the project last year. NBP feared branch closures in different countries while OGDC backed off after US-based investors threatened to withdraw its shares from the company if it associated itself with the project.

In March this year, the world’s largest bank Industrial and Commercial Bank of China Limited (ICBC) after agreeing to finance Pakistan’s side of the pipeline shied away after succumbing to U.S. pressure.

Tehran offers to provide all the oil Pakistan needs

Tehran has offered to provide all the oil Pakistan needs on a 90-day deferred payment.

“Iran has confirmed financing of $250 million on government-to-government basis and also expressed willingness to seek more finance from Iranian commercial banks,” a government official said quoting recent development made in Iran during negotiations between officials of both the countries. Pakistan seeks financing of over $500 million from Iran to finance IP gas pipeline project.

Modalities will be finalized during upcoming talks between the two countries scheduled in Islamabad.

“Pakistan is going to woo China again to help out with its finance constraints during the upcoming visit of President Asif Ali Zardari,” official said adding that Minister for Petroleum Dr Asim Hussain will accompany the head of state.

Iran is the second country to offer import in weeks as India recently agreed to meet Pakistan’s total import requirements, however, the deal did not go through as Pakistan is reluctant to over rely on its old foe and also rejected diesel import due to security reason.

“Pakistan may avail Iran’s offer to meet total oil requirements but there will be some hurdles like opening Letter of Credits (L/Cs) due to sanctions against the oil-rich country,” official said adding that oil imports from Iran could be possible through a third party. “Iran is ready to provide oil on a three-month deferred payment facility but it should be forward looking, otherwise the disparity between rupee and dollar could hurt us,” official said.

State-owned National Bank of Pakistan (NBP) and Oil and Gas Development Company Limited (OGDC) walked away from the project last year. NBP feared branch closures in different countries while OGDC backed off after US-based investors threatened to withdraw its shares from the company if it associates itself with the project.

(Source: The Express Tribune)

Iran offers to finance entire IP gas pipeline - Tehran Times
 

S.U.R.B.

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Good! ,both countries need to take this cooperation to a new level.Extra regional powers will always try to intervene/pressurize.Iran ,Saudi arabia , Turkmenistan or from where ever Pakistan can get it and afford it, it's her choice to go for it.
 

S.U.R.B.

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“Pakistan may avail Iran’s offer to meet total oil requirements but there will be some hurdles like opening Letter of Credits (L/Cs) due to sanctions against the oil-rich country,” official said adding that oil imports from Iran could be possible through a third party. “Iran is ready to provide oil on a three-month deferred payment facility but it should be forward looking, otherwise the disparity between rupee and dollar could hurt us,” official said.



(Source: The Express Tribune)

Iran offers to finance entire IP gas pipeline - Tehran Times
I may not be the right person to give my view on it,but can't we go back to the barter system, depending upon the market rates we select the prices keeping fluctuation of rates in mind and exchange the goods ,omitting the third part.
Is it allowed at the state level or the sanctions will not let that happen?
 

Secur

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I may not be the right person to give my view on it,but can't we go back to the barter system, depending upon the market rates we select the prices keeping fluctuation of rates in mind and exchange the goods ,omitting the third part.
Is it allowed at the state level or the sanctions will not let that happen?
Well it seems like a good idea ... A couple of countries in this region are once again using the ancient barter system or trading in same currency so it might be possible for us too ... The next field of cooperation that I see with Iran is defense - we can both provide each other with a lot of technologies !
 

KRAIT

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Pakistan has pitched investment proposals to China and Russia but no major progress has been made due to U.S. pressure.

Iran will be better ally to Pakistan than the rest.
 

Secur

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Pakistan has pitched investment proposals to China and Russia but no major progress has been made due to U.S. pressure.

Iran will be better ally to Pakistan than the rest.
Since her independence , Pakistan has chosen her priorities wrong / foreign policy has been disastrous ... Now is the time to rectify that mistake :)
 

S.U.R.B.

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Well it seems like a good idea ... A couple of countries in this region are once again using the ancient barter system or trading in same currency so it might be possible for us too ... The next field of cooperation that I see with Iran is defense - we can both provide each other with a lot of technologies !
I can only see it happening once both the countries become permanent members of the SCO.
 

Secur

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I can only see it happening once both the countries become permanent members of the SCO.
Nah , it is not necessary ... Why should we pay heed to the sanctions imposed on Iran ? I bet USA will once again slap sanctions on us after it abandons Afghanistan if history is any indication !
 

SamranAli

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now thats the news. This is bilateral project as of now so complete it without others it will more solidate our bond.
 

Redbull

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Pakistan has pitched investment proposals to China and Russia but no major progress has been made due to U.S. pressure.

Iran will be better ally to Pakistan than the rest.
China is still No.1.
Iran got money to make out of this that's why they are helping. No offence but it's the truth.
 

S.U.R.B.

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Nah , it is not necessary ... Why should we pay heed to the sanctions imposed on Iran ? I bet USA will once again slap sanctions on us after it abandons Afghanistan if history is any indication !
Yeah sure they will,but under that platform of SCO you can create opportunities.Don't you?
 

SamranAli

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now thats the news. This is bilateral project as of now so complete it without others it will more solidate our bond. ,....
 

Secur

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Yeah sure they will,but under that platform of SCO you can create opportunities.Don't you?
Yes they will , that is inevitable but surely SCO can more than compensate for that loss by the massive opportunities !
 

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