Iranian President Hasan Rouhani will lead a delegation to Islamabad this month to seek stronger bilateral relations between the neighbors. Reportedly, (Iran-Pakistan) IP gas pipeline will be the primary agenda of this visit. President Rouhani has agreed on the visit however, the dates are yet to be finalized. According to diplomatic sources, the visit is due in this month of March. President Rouhani will be accompanied by several senior military officials as well. IP Gas Project was commissioned in December 2014 however due to several US sanctions on Tehran, development came to a completed halt. Officials are now hopeful that the project will soon begin.
The Iranian President stated that he will push for completion of IP gas pipeline since Pakistan had committed to completing the project after sanctions were lifted. If Pakistan were to further delay the development, it would result in several million dollars imposed as a penalty and lead to upset between the two countries. Apart from the IP gas pipeline, economic cooperation, trade and investment in petrochemical and energy will also be discussed. Pakistan, having terminated UN sanctions on Iran, is set to seek benefits in the banking sector by establishing new branches and subsidiaries of Iranian banks in Pakistani territory. The insurance sector will receive a significant boost along the same lines.
The primary benefit of UN sanctions being terminated comes in the fact that the two countries will not be able to import, and transport Iranian oil, petroleum, gas and petrochemical products, and one of the major deals the two countries have on the table is the IP gas pipeline, work on which is still on a halt indefinitely due to insufficient funds. Experts believe that this visit from President Rouhani will significantly boost the relationship between the two countries especially regarding defense and energy ties.
IP Gas Pipeline
The proposed gas pipeline will originate from Asalouyeh, Bushehr in Iran, pass through Bander-Abbas, Iranshahr, Khudar, Sui, and end at Multan, Punjab in Pakistan. The proposed length of the pipeline is 2,77s km and has a maximum capacity of 40 billion cubic meters a year.You can follow us on Facebook, Twitter, or Google+ for more updates. Otherwise fill in the subscription box above, or subscribe to our RSS Feed.