ISLAMABAD: The caretaker government has approved the construction of a gas pipeline from the Iranian border to Gwadar to meet the energy shortage in the country.
The approval is a step towards the implementation of the Iran-Pakistan gas pipeline project, which has been delayed for a long time since 2013.
After the approval of the Cabinet Committee on Energy, the Caretaker Cabinet approved the decision to go ahead with the construction of the 81 km gas pipeline.
The project, which would transport 750 million cubic feet of gas from Iran to Gwadar, would provide economically challenged Pakistan with a cheaper alternative to importing liquefied natural gas (LNG).
The Cabinet’s approval is also expected to save Pakistan from a potential penalty of $18 billion for delaying the completion of the project. This will result in substantial annual savings for Pakistan by purchasing gas from Iran at a cheaper rate.
It should be remembered that despite the threat of sanctions on Iran by the US, Pakistan decided to go ahead with the gas pipeline project. Pakistan is also working on legal and diplomatic efforts to bypass sanctions for the pipeline project.
Meanwhile, the federal cabinet has also approved the completion of the first phase of the gas pipeline project within the borders of Pakistan. With an estimated cost of $158 million, construction of the 81 km section of the pipeline is set to begin soon.
