Iran cancels loan to Pakistan for gas pipeline project

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Iran has cancelled its plan to grant a $500 million loan to Pakistan for building a  part of the pipeline for the Iran-Pak gas pipeline project.

According to an online comment by the Iranian Deputy Oil Minister Ali Majedi on Saturday, Iran is not obligated to finance the pipeline at the Pakistani side nor does it have enough funds.

Majedi dismissed the Pakistani allegations of sanctions against Iran causing hindrances in the construction of the project at the Pakistani side.

“Such remarks are unacceptable and Pakistan is expected to meet its obligations in this contract,” commented Majedi.

According to Iranian media, the minister also stated that Iran will be demanding the compensation from Pakistan if it fails to complete its side of the project by the end of 2014.

Majedi called on Pakistan for seeking aid from European companies for completing the pipeline.

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