India, Pakistan resolve differences over Iran gas pipeline

Mumbai: India and Pakistan today said they have resolved all bilateral issues over the $7.4 billion gas pipeline from Iran and will jointly address Tehran's demand for price revision.

''I am happy to report that as far as Pakistan and India are concerned, we have resolved all bilateral issues. There is no issue whatsoever that needs to be addressed now," visiting Pakistan foreign minister Shah Mahmood Qureshi said after a meeting with petroleum minister Murli Deora.

India, which had differences with Pakistan over the transit fee for piping gas through Pakistan territory, said the two nations have narrowed down their differences after a meeting of oil ministers in Islamabad in April.

"We have reached an agreement on the principles of charging transit fee. India remains fully committed to the project," Deora said.

Officials of the two countries will now meet in Madrid, on 1 July, to evolve a strategy on price negotiation, which Iran now wants to be revised each year.

India and Pakistan have opposed the new clause and plan to make a joint case at the trilateral meeting in Tehran next month.

The Pakistan foreign minister, who also holds the additional charge of oil ministry, said his country had no issues with India's demand of Iran handing over custody of gas at the India-Pakistan border, to cut transit risk through Pakistan.