India and Pakistan have resolved commercial differences holding up a proposed multi-billion-dollar gas pipeline from Iran, oil ministers of both South Asian nations said on Friday.

The project, which aims to transport gas from Iran to Pakistan and India, was first mooted in 1994 but has been stalled by a series of disputes over prices and transit fees.

“I am happy to report that as far as Pakistan and India are concerned, we have resolved all bilateral issues. There is no issue whatsoever that needs to be addressed now,” Shah Mehmood Qureshi was quoted as saying by the Press Trust of India news agency.

Mr Qureshi made the announcement after talks with Indian Oil Minister Murli Deora.

“We have reached an agreement on the principles of charging transit fee. India remains fully committed to the project,” the Indian minister was also quoted as saying by PTI.

Mr Qureshi also said Pakistan will “provide fool-proof security” for the planned 2,600-kilometre pipeline, expected to pass through the volatile Balochistan region.—AFP