Business

Pakistan, Iran to jointly develop gas pipline implementation plan

Published

1 year ago

Farwa

Pakistan renewed its commitment to project: minister.
Iran offers to export more electricity for Gwadar, Chaman.
Both countries decide to explore ways to implement project.

ISLAMABAD: In a positive development, Pakistan and Iran have decided to jointly develop a consensus implementation plan for the Iran-Pakistan (IP) gas pipeline, The News reported Friday.

The decision came after a meeting between two sides in Tehran during which Islamabad had sought relaxation on the Feb-March 2024 deadline to avert the penalty of $18 billion for not laying down a pipeline in its territory.

Iran had asked Pakistan last year to construct a portion of the gas line project in its territory till February-March 2024 or pay a $18 billion penalty.

The negotiations regarding the plan would begin in the next two to three weeks.

Despite this, the Iranian deadline to move international arbitration by September 2024 would remain in the field allowing that much time to explore bilateral avenues.

Energy Minister Muhammad Ali told The News, “We have held constructive talks in Tehran and Pakistan has renewed its commitment to the project.

“We have convinced the neighbouring country of our deficient energy status for which we also have enhanced work on the TAPI gas line project. The Iranian side listened to us carefully and agreed to increase active engagements to enable the IP project.”

During the talks, the Iranian side also offered to export more electricity to Pakistan for Gwadar and Chaman and the former agreed to consider that. Pakistan is already importing 104MW of electricity from Iran.

Ali said in his view Pakistan needs more electricity from Iran for Gwadar, of course on a better negotiated tariff. Though China is setting up an imported coal-based 300MW power plant at Gwadar, it may not fulfil the future needs.

“Once the national grid gets installed at Gwadar, Pakistan can also use more Iranian electricity for its national use,” the minister said.

When the energy minister was asked about the gas project and the issue of $18 billion penalties, he said that both countries have decided to explore ways to implement the project.

The Inter-State Gas Systems of Pakistan and the National Iranian Gas Company signed a revised agreement in September 2019 for the pipeline.

This accord stipulated that Iran would not approach any international court for any delay till 2024 but would be free to do so afterwards. Pakistan could not build the pipeline primarily due to the risk of US sanctions that any project with Iran would invite.

During the talks, the Iranian side was of the view that there could be no US sanctions as it was already exporting gas to Azerbaijan and Turkmenistan, which have not been exposed to any sanctions. The same would hold good for Pakistan in that scenario.

Business

February 7, 2025: The value of the Pakistani Rupee (PKR) in relation to the US dollar is unchanged.

Published

14 hours ago

Farwa

KARACHI: The open market exchange rate between the US dollar and the Pakistani rupee (PKR) was Rs279.4 on February 07, 2025, with a selling rate of Rs281.1. The interbank exchange rate between the US dollar and the Pakistani rupee is Rs 278.45, according to Interbank.

There was no movement in the US dollar (USD) from the previous closure of Rs278.

Business

The NORINCO Group is invited by CM Sindh to explore opportunities.

Published

2 days ago

Farwa

Chinese companies have been invited by Sindh Chief Minister Syed Murad Ali Shah to visit Karachi and other regions of Sindh Province in order to observe the quickly growing businesses and investigate prospects in fields like clean energy, infrastructure development, and public transit projects.

Speaking in Beijing to a delegation headed by the chairman of NORINCO International Co., Ltd., he stated that all facilities required would be provided by the governments of Sindh Province and Pakistan.

With assistance from NORINCO International, the Sindh Chief Minister stated that the Provincial Government will firmly urge North Vehicle and BeiBen to think about setting up a Vehicle Assembly Plant in the Dhabeji Special Economic Zone.

Business

A deal with Pakistan to fight financial crimes has been approved by the Saudi cabinet.

Published

2 days ago

Farwa

In order to strengthen collaboration in the fight against money laundering, terrorist financing, and associated crimes, the Saudi Press Agency announced this week that the Saudi cabinet, led by Crown Prince Mohammed bin Salman, had approved a memorandum of understanding (MoU) with Pakistan’s Financial Monitoring Unit (FMU).

Due to its severe money laundering and terrorism funding issues in recent years, Pakistan was added to the Financial Action Task Force’s (FATF) grey list in June 2018.

The nation was taken off the gray list in October 2022 after enacting extensive measures to fortify its financial system.

The FMU is Pakistan’s financial intelligence unit, created under the Anti-Money Laundering Act of 2010 and tasked with collaborating with foreign partners and evaluating reports of suspicious transactions.

According to the SPA, “the cabinet approved a memorandum of understanding regarding cooperation in exchanging investigations related to money laundering, terrorist financing, and related crimes between the Financial Monitoring Unit in the Islamic Republic of Pakistan and the General Department of Financial Investigation at the Presidency of State Security in the Kingdom of Saudi Arabia.”

The MoU is an indication of Saudi Arabia and Pakistan’s growing strategic partnership. A significant Pakistani diaspora resides in the Kingdom, and numerous Pakistani businesses have established a presence there.

Saudi Arabia has been a key supporter of Pakistan’s economy, bolstering its reserves with substantial deposits in the State Bank of Pakistan and offering deferred oil payment facilities.