Iran To Build Refinery, Supply Gas To Pakistan In Food Barter
DUBAI: Iran has agreed to help build an oil refinery for Pakistan and supply its energy-hungry neighbour with natural gas in a barter deal for food, Iranian media reported on Thursday.
Officials from the two countries agreed on Wednesday that Iran would help Pakistan State Oil (PSO) build a refinery and accept wheat, meat and rice as payment for fuel produced, Fars news agency reported a Pakistani energy official as saying.
Iran, which has huge reserves of gas but exports little due to sanctions, has also agreed to complete Pakistan's part of a long-planned gas pipeline and accept payment in food for gas supplied through it.
ISLAMABAD - Disregarding risks of US sanctions, Pakistan Thursday said it would pursue the Iran-Pakistan gas pipeline project that is enormously important for the country.
“Yes, there are some issues, but Pakistan is determined to have this project to meet the national energy needs,” Foreign Office Spokesman Muazzam A Khan said in response to queries during a weekly press briefing.
Mr Khan was asked for his comments on a Wall Street Journal report that Pakistan risks imposition of stringent US and UN sanctions if proposed Iran-Pakistan pipeline deal goes through.
“We are least bothered about the US position. Our position about the proposed project is very clear that it was in the best national interest of the country,” the spokesman said. He conceded that Pakistan has an understanding or arrangement with the US and Nato that all of their supplies will pass through Pakistan.