Thaw in Saudi-Iran ties may pave way for Pakistan gasline project

F.P. Report

ISLAMABAD: The ice is melting fast as the restoration of diplomatic ties between Saudi Arabia and Iran may also leave a positive spin on Tehran’s relations with Pakistan, on Monday.

According to the diplomatic sources, Islamabad has accelerated its efforts for completion of Iran-Pakistan (IP) gas pipeline project. The sources were of the view that Iran would welcome if Saudi Arabia desires to invest in the IP gas pipeline or other energy projects in Pakistan.

The Saudi finance minister had announced that Riyad will make heavy investment in Iran soon, the sources said, adding Saudi companies can extend physical and technical cooperation for the completion of IP gas pipeline project.

Iran has reactivated its embassy in Saudi Arabia last week and Riyadh is expected to reciprocate after Eidul Fitr.

Pakistan, in the meanwhile, is actively pursuing to win waivers from sanctions on the IP gas pipeline project, for which Saudi Arabia can play an important role.

The diplomatic sources said Pakistan can be fined up to $18 billion for not pursing the gas pipeline project.

Aas per the agreement the IP pipeline should be completed by 2024 and in case of failure Pakistan may face arbitration in a French court and it might face $18 billion in fine if it terminated the Iran-Pakistan (IP) gas pipeline agreement.

Courtesy: (24news)