ISLAMABAD, Feb 19: Pakistan will take up with Iran on Friday the trans-Pakistan gas pipeline, cross-border smuggling of petroleum products and bartering crude oil with motor spirit, official sources told Dawn.

Petroleum Minister Usman Aminuddin will raise with Iranian Oil Minister Bijan Zanganeh the question of increasing crude oil import from Tehran provided it was offered “better terms,” said a senior government official. The Iranian oil minister is due here on Thursday on a two-day visit to discuss with Pakistan authorities four issues as agreed between the two sides on Tuesday.

On top of the agenda is $3.2 billion trans-Pakistan Iran to India gas pipeline, followed by $1.2 billion Iran-Pakistan Refinery in Hub district of Balochistan, export of motor spirit to Tehran and import of crude oil, official sources confirmed.

Pakistan authorities attach little optimism to the proposed 2670-km gas pipeline from Iran to India in the given hostile environment but the meeting would provide an opportunity to review progress on the subject viz-a-viz Iran-India interaction over the subject, the official said.

The official sources said that Iran-Pak refinery, a dormant project since 1992, also had no significance in view of the fact that Pakistan was now encouraging establishment of refineries without any guaranteed rate of return while Iran wanted a 25 per cent guaranteed return under the old petroleum policy.

“We are not keen on pursuing the project as the government policy is very clear with regard to the rate of return issue. Whosoever is willing to set up a refinery will have to follow the 1997 petroleum policy and prepare the project on pure economic grounds,” said the official.