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The Gas Sales and Purchase Agreement (GSPA) to be signed by Tehran and Islamabad was approved by the Pakistani cabinet earlier in the week. However, reports noted that the Iranian government had not yet sought the approval of their board on IPI which had the status of a standing committee1. The Pakistani cabinet approval included the planned gas purchases, a government guarantee, gas sales to local supply companies and dealing with additional gas if India does not join the project.
Iran meanwhile has reiterated its long-standing position that they were ‘very keen’ that India joined the project. Reports also indicated that the Iranian side had also proposed that the forthcoming two-day India-Pakistan bilateral meeting in New Delhi on February 14-16 to resolve the contentious issue of transit fees be turned into a tri-lateral meeting involving Tehran2. Industry observers, experts and senior officials on the Indian side however averred that no agreement was possible with Pakistan till such time that elections were held and a new government was sworn in3.
- 1. Zafar Bhutta, “Iran gas purchasing agreement delayed,” The Daily Times, January ,2008, at http://www.dailytimes.com.pk/default.asp?page=2008%5C01%5C11%5Cstory_11-...
- 2. “IPI natural gas deal waiting for India,” Press TV, January 12, 2008, at http://www.presstv.ir/detail.aspx?id=38458§ionid=3510213
- 3. “Iran may not sign gas pipeline pact with Pakistan next week,” Economic Times, January 11, 2008, at economictimes.indiatimes.com/.../articleshow/2692628.cms