ISLAMABAD: The lack of progress and controversy surrounding the project did not stop President Mamnoon Hussain to reiterate on Friday that the government is committed to completing the Iran-Pakistan Gas Pipeline project at any cost.

“Pakistan is determined to complete the gas project,” the President said during a meeting with the Speaker Iranian Parliament, Dr Ali Larijani at the presidency.

Dr Larijani said that Iran wants to increase trade volume with Pakistan and expressed interest in the import of rice from Pakistan.

President Mamnoon and the Iranian speaker called for opening the branches of their banks on reciprocal basis and added that it would enhance their bilateral relations.

In his recent visit to Iran, Petroleum Minister Shahid Khakan Abbasi aired his fears of US sanctions if the project is commissioned.

He was quoted as saying: “I am hopeful that both nations can find a solution for the project despite threats of sanctions.”

The project was launched by the last Pakistan People’s Party (PPP) government in March 2013 to feed energy-starved Pakistan.

The 1,244-mile pipeline would each day transport more than 750 million cubic feet of natural gas to Pakistan from Iran’s South Pars gas field in the Persian Gulf.

Iran has nearly completed a segment of the pipeline on its side while Pakistani segment, could not start. Pipeline talks between the countries stretch back as far as 1994.

Pakistan produces only 30 per cent of the natural gas it needs, while Iran has the world’s second-largest natural gas reserves. Many of Pakistan’s factories and its transport system rely heavily on natural gas — about 21pc of the country’s vehicles run on compressed natural gas.

A source in the petroleum ministry said Iran was already facing international sanctions as a result Pakistan could not make any financial transaction with the neighbouring country. “This is the main reason behind the staling of the project,” the source said.

According to the agreement the project was to be completed by December 31, 2014 after which Iran can impose $200 million per month penalty for delaying the project.

Published in Dawn, December 6th, 2014