China Offers $500 Million Loan to Pakistan for IP Gas Pipeline

China has offered a loan of $500 million to Pakistan for the completion of the Iran-Pakistan natural gas pipeline.

Pakistan had earlier planned to generate the billion dollars through the tax and Iran will be putting in $500 million, Paksiatni newspaper The Express Tribune said in a report.

Petroleum ministry officials confirmed that Pakistan is in the middle of procuring compressors and pipelines from a Chinese company and Iranian company Tadbir will do the construction, the newspaper reported. Pakistani companies such as Sui Northern Pipeline Limited, Sui Southern Gas Company Limited and Frontier Works Organisation would be involved.

Pakistan and Iran had formally launched the project on Monday in an elaborate groundbreaking ceremony held at the Pakistan-Iran border.

The 1,600-kilometre pipeline, projected to cost $1.5 billion would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan daily.