Pakistan had decided to seek aid from the new Iranian government to completely finance a US$1.8 billion bilateral gas pipeline project. Pakistan feared that the US sanctions could hit funding for the deal.
According to Pakistani Petroleum Prime Minister Shahid Khaqan Abbasi, the Pakistani government will continue the pipeline project. Pakistan discussed with the new cabinet of the Iranian government to fund the project until completion.
Yesterday, Abbasi told reporters that Iran has already faced sanctions. Its Foreign Office was asked to assess the impact of US curbs on the project.
Previously, Iran told the government of Pakistan that it would loan USD500 million for the country's gas pipeline project. The remaining amount needed for the project would be raised by Pakistan from global financial institutions.
The construction project was awarded to Iranian firm Tadbir Energy as agreed upon by the two governments. According to Pakistan's Foreign Office spokesperson Aizaz Chaudhry, the Iran-Pakistan pipeline had high importance in the acute energy requirements in the country.
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