Pakistan Confirms China Pullout From Pipeline Project, Eyes Other Options

[rama]

ISLAMABAD -- Pakistan says the Industrial and Commercial Bank of China has "no more interest" in funding a project to build a natural-gas pipeline from Iran to Pakistan.

A Pakistani Finance Ministry spokesman said on March 14 that the Chinese institution had been negotiating with Pakistan's Habib Bank over financing for the Pakistani section of the pipeline. He added that he did not know why the Chinese bank had pulled out of the deal.

Pakistani leaders have vowed to press ahead with the pipeline despite U.S. opposition to the project. Islamabad says the pipeline is vital for the supply of gas Pakistan.

A Finance Ministry official, speaking on condition of anonymity because he was not authorized to discuss the matter publicly, told RFE/RL's Radio Mashaal that the Chinese bank was not the ministry's "final option" for funding.

The source said Iran had already offered to invest in the project on the Pakistani side, and Islamabad has "options to talk to the governments of China and Russia."

The same official said an exploratory committee had been formed with Petroleum Minister Aasim Hussain as chairman and other members including Water and Power Minister Syed Naveed Qamar and State Bank of Pakistan Governor Yasin Anwar, along with lower-level officials from other ministries.

"They will be reviewing the other options," the source said.

Pakistani Foreign Minister Hina Rabbani Khar said on March 14 of the Chinese bank's apparent withdrawal that "We cannot afford to be selective in pursuing energy sources and we will continue to do whatever we consider to be in our national interests."

Khar said the pipeline is a "fairly viable project and we hope there will not be any problem in trying to find ways and means of ensuring its funding."

The United States has warned Pakistan and any companies assisting in construction of the pipeline that they could face sanctions if they move forward on the project.

Washington and the European Union are seeking to stop Iran's export of petrochemical products in a bid to force Iran to cooperate with UN demands it prove its nuclear program is entirely for peaceful purposes.
Pakistan Confirms China Pullout From Pipeline Project, Eyes Other Options

 

[The SC]

Because Iran is willing to finance it !

 

[Splurgenxs]

Higher than mountain.........

 

[darkinsky]

they veen need their pipeline to be financed??, beggars

 

[canadian icehole]

China either received a counter offer or a serious threat from the Americans. Would be interesting to know the real reason.

 

[farhan_9909]

iran is ready to finance the project

 

[Guest01]

Pakistani friends will still try to clutch at straws saying that Iran will finance the project. Finance with what? Do they even have forex worth the name. The oil payments are being made in kind with wheat etc. What will Iran finance the project with? Wheat?

Instead of understanding that the risk of the pipeline passing through Talibville is so adverse that it will take only a fool's brain to underwrite it, Pakistan continues to go from one door to another hoping to keep the strategic depth and also economic advantages, both alive at the same time.

Either you can have your cake. Or eat it. Pakistan needs to understand that. Else it will be a case of begging bowl from one door to another. And when the montain tallel friend cannot create the gumption to swallow this one. Guess who will? We continue to interestingly look at what other financial fantasy will the Pakistanis conjure this time.

 

[American Pakistani]

If i'm not wrong there are many countries ready to finance this project. Russia, Germany & Iran....?

 

[farhan_9909]

iran is ready to finance the project

bt the sad part is our country is in such a bad position that we cant even fund our own project

 

[anonymus]

China either received a counter offer or a serious threat from the Americans. Would be interesting to know the real reason.

Probably reasons are economical.Look at the map.

The pipeline would originate from Iran would traverse whole lenght of pakistan and enter china through karakoram pass after crossing himalyan mountains and then that gas has to be transported across china in order to reach its industries.

This project was never economically feasiable.It was being pursued due to political reasons.pakistan is pushing for this project to have a reciprocal relation with china not the curren one where pakistan has nothing to offer. china could get gas more easily from central asian republics cutting distance by half.But at certain point economics trumps politics.

 

[illusion8]

If I am right the IP requires 1.5 billion USD, cannot Pk just finance it from its own private or central resources? Pk should give some of its coal rights to India or China to fund this pipeline if it could.

 

[BATMAN]

Higher than mountain.........

I actually thank China for financing Indian sponsored regime any more.

Energy crisis in Pakistan is not the only crisis gifted by Zardari clan.

 

[beggingwalker]

If I am right the IP requires 1.5 billion USD, cannot Pk just finance it from its own private or central resources? Pk should give some of its coal rights to India or China to fund this pipeline if it could.

The question is not financing.This pipeline is most vulnerable to attacks and cost is 700 million dollars

 

[BATMAN]

The question is not financing.This pipeline is most vulnerable to attacks and cost is 700 million dollars

How are the costs calculated?

How many kilometers of pipe line?

 

[samrat]

What happened to Pakistan's gas?