Iran to help end India-Pakistan deadlock over gas transit fee

04 June 2008

Iran will help India and Pakistan end a deadlock on the issue of transit fees for natural gas to be imported by India from Iran through Pakistan.

Iranian President Mahmoud Ahmadinejad has constituted a four-member committee to hold talks with Pakistan and India on the transit fee to be paid by India to Pakistan for natural gas transported through the proposed $7.5-billion pipeline.

He has given the panel 45 days to settle the issue between the two countries and submit a report to him, the Daily Times quoted sources in Pakistan's petroleum ministry as saying.

Pakistan and Iran were expected to sign a bilateral gas sale-purchase agreement (GSPA) by 31 May for setting up the gas pipeline from Iran. It has now been deferred till the Iranian committee resolves the transit fee issue between Pakistan and India, the sources said.

Pakistan and India too could sign a gas transit fee agreement when the GSPA is signed by Iran and Pakistan, the sources said.

Iran hopes to sign a trilateral agreement for setting up the Iran-Pakistan-India gas pipeline by the middle of this summer.