According to Shana, the first round of gas talks has started today morning between Iranian minister of petroleum, Rostam Qasemi and Asem Hosain, advisor to Pakistan PM on energy and natural resources.

Iranian minister of petroleum is also to visit Pakistan’s prime minister and the president of the country to deliver Iranian president message to his Pakistani counterpart.

Heading an 8 member high ranking delegation, Iranian minister of petroleum arrived in Islamabad yesterday.

The two sides negotiations are focused on extending a 500 million dollars credit by Iran for construction of IP gas line in Pakistan territory while Pakistan will provide the reminder of costs through taxes.

The two sides have already agreed on forming a joint venture for construction of the pipeline in Pakistan territory.

Under a gas contract between the two countries, Islamic Republic of Iran will start delivery of 21.5 million cubic meters of gas per day (7.8 billion dollars annually) as of 2014. 

 while Pakistan should lay down 700 kilometers of pipeline inside its territory, Iran should extend its gas pipeline by 300 kilometers from Iranshahr city, southeast of the country, to Chabahar port, a point in the border with Pakistan.