NEW YORK, Sept 23: Iran and Pakistan agreed on Tuesday to float a joint company to raise funds for the Iran-Pakistan-India gas pipeline.

The decision was taken at a meeting between President Asif Ali Zardari and his Iranian counterpart Mahmoud Ahmadinejad on the sidelines of the UN General Assembly.

Iran will provide sovereign guarantee for the proposed company while funds will be raised in Pakistan, Iran and the Middle East.

Briefing journalists on the Zardari-Ahmadinejad meeting, Information Minister Sherry Rehman said Iranian and Pakistani foreign ministers will meet on Oct 9 or Oct 10 to work out details.

The project was proposed several years ago but could not be implemented because of a strong US opposition.

India is the main beneficiary of the proposed pipeline but has been dragging its feet since signing a nuclear pact with the United States in 2006.

The United States opposes any major investment in Iranian gas and petroleum projects and a law requires Washington to impose sanctions on a country engaged in such a project with Tehran.

Ms Rehman said the two sides also had agreed to form two separate teams of five deputy ministers each for fleshing out details of the plan.

“The two sides made good progress” in the Zardari-Ahmadinejad meeting, she said.