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Iran to invest $500m in building pipeline in Pakistan

Business Materials 17 November 2012 15:00 (UTC +04:00)

Azerbaijan, Baku, Nov.17/ Trend G.Mehdi/

Iran will ink a deal with Pakistan next week to extend financial and technical assistance for laying Pakistan's portion of the gas pipeline between the two countries, the Fars News Agency reported.

Iranian President Mahmoud Ahmadinejad is scheduled to visit Pakistan next week to sign Inter-Governmental Cooperation Agreement (IGCA), according to which the Iranian government will provide a loan of $250 million for Pakistan and another $250 million will be arranged through Iranian commercial banks for engineering, procurement and construction works on the gas pipeline.

Pakistan is scrambling to secure funds for the pipeline project amid fierce U.S. opposition in the wake of sanctions imposed on Iran for its nuclear program.

Under a proposed plan, Pakistani and Iranian companies will form a joint venture to lay the pipeline.

Earlier, China and Russia had committed to financing the pipeline if they were awarded the construction contract without bidding, but no progress could be made apparently due to U.S. opposition.

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