ISLAMABAD, July 17: Foreign Minister Khurshid Kasuri on Tuesday underscored the need for an early agreement on the $7 billion Iran-Pakistan-India (IPI) gas pipeline project amid reports that the three parties had finally resolved the crucial gas pricing issue.

Articulating this view in a meeting with visiting Iranian deputy foreign minister Dr Mehdi Safari, Mr Kasuri noted that the gas pipeline project would have a strategic bearing on the progress in other areas of cooperation as well, said a statement issued by the Foreign Minister’s office.

Dr Mehdi Safari, who is here for the periodic bilateral consultations between the foreign ministries of Pakistan and Iran, called on Mr Kasuri at the Foreign Office on Tuesday.

His visit coincides with media reports that Iran, Pakistan and India have agreed on a gas “price formula” which had earlier emerged as an impediment to the 2600km gas pipeline project.

President Gen Pervez Musharraf has been saying that the multi-billion dollar gas pipeline project which aims at supplying natural gas from Iran to Pakistan and then onwards to India, would be a win-win for all three parties.

Dr Safari during his meeting with Mr Kasuri expressed Iran’s desire to further strengthen its relations with Pakistan in diverse fields.

He also conveyed greetings of Iranian foreign minister Mr Manouchehr Muttaki to Mr Kasuri.Reciprocating Iran’s desire, foreign minister Kasuri underlined the importance of growth in overall bilateral relations, especially in the commercial, economic and energy sectors, the statement said.

According to the statement in the regional context, views were also exchanged on the situation in Afghanistan.

“Both the sides reiterated their resolve to continue to assist Afghanistan in its endeavours to restore peace and stability,” it said.

Apparently, Tehran’s nuclear programme also figured in the discussions.

Pakistan and Iran reached an agreement to hold consultations periodically during the visit of Foreign Minister Kasuri to Tehran in December 2006.