ISLAMABAD, Dec 30: Pakistan and Iran are likely to sign an accord under which Pakistan will get oil supply on deferred payment. The two countries are also likely to reach an understanding to go ahead with the $7 billion gas pipeline project even if India walks out of the plan.

A petroleum ministry official told Dawn that a memorandum of understanding could be signed under which Iran would supply 50,000 barrels of crude per day on 90-day deferred payment.

Prime Minister’s Adviser on Petroleum Dr Asim Hussain is in Tehran heading a six-member delegation.

A TV channel quoted Dr Hussain as saying on Tuesday that an agreement had been reached on oil supply on deferred payment.

Iran is currently supplying 10,000 barrels of crude oil per day to Pakistan on 30-day deferred payment.

According to sources, visiting Iranian Energy Minister Parviz Fattah assured President Asif Ali Zardari on Tuesday of his country’s willingness to supply more oil on deferred payment to help Pakistan solve its balance of payment problems. He also discussed with the president matters relating to the region and bilateral ties. He renewed an invitation from President Mahmood Ahmedinejad to President Zardari to visit Iran.

Petroleum ministry sources said Pakistan had requested Iran to finalise the pipeline project even if India walked out of the deal because the country was facing a severe gas shortage.

Iranian news agency Irna quoted officials as saying that both sides would try to devise a strategy to remove obstacles in the implementation of the project, especially the issue of gas price.