Secretary Petroleum Abid Saeed Thursday informed the Senate Standing Committee on Finance that the government has requested Iran for amendment to the Iran-Pakistan gas pipeline project to avoid penalty for any delay in the implementation of the project.
He informed the committee that the project is facing delay due to international sanctions against Iran. The government of Pakistan is in touch with Iran and negotiating to avoid penalties. Last week a technical delegation of Iran visited Pakistan to discuss the important issues related to IP and both the countries discussed the Gas Sales Purchase Agreement (GSPA) with focus on extending the dateline of the project, he said and added Pakistan has talked about the amendment in the GSPA provisions in the talks with the delegation.
Pakistan is also working on an alternate strategy to remove bottlenecks in implementation of the Iran-Pakistan Gas Pipeline Project, he added. Senator Osman Saifullah Khan said that US is improving relations with Iran, but penalties are being imposed only on Iran-Pakistan Gas Pipeline Project. Senator Sardar Fateh Muhammad Hassani raised question whether it is a fact that no budgetary provision has been made for the Pak-Iran Gas Pipeline Project? Any cogent reason in this regard may be indicated. Secondly the Finance Minister may clarify the Government's position with regard to the provision of the agreement which says that the non implementer party will be required to pay penalty.
Secretary Finance Dr Waqar Masood Khan said that the government wants to resolve the issue amicably to avoid any penalty. Secretary Planning Hassan Nawaz Tarar informed the committee that Gwadar Airport would not be constructed by Civil Aviation Authority rather a special Board of Construction has been forged for constructing the proposed airport.
During the meeting, the committee recommended increase in fund to ensure speedy construction of Gwadar Airport. The issue of old and new routes of Pak-China Economic Corridor were discussed in detail. Senators raised voice of dissent on change of original route during the committee meeting. They said we will not accept change of route because Pashtuns and Baloch have been completely cut off in the new route, said Senators Ilyas Bilour, Fateh Muhammad Hussani and Talah Mehmood.
ANP Senator Ilyas Ahmad Bilour walked out of the meeting in protest against providing allegedly incorrect information to parliament by Minister for Planning pertaining to altering the old route of Pak-China Economic Corridor. Senator Muhammad Talha Mehmood, Sughra Imam, Kulsoom Parveen, Saleem H Mandviwalla and Sardar Fateh Muhammad Hassani also supported Ilyas and staged walkout of the meeting, who were later persuaded by Senator Rafique Rajwana for ending their boycott.
In the last meeting of the committee, Minister for Planning and Development had said that the government has decided to go for completion of eastern part in the first phase on Built Operate and Transfer (BoT) basis and in the second phase to western route via D I Khan district of Khyber Pakhtunkhawa and Dera Bugti of Balochistan to Gwadar.
During the committee proceedings, Senator Saleem Mandviwalla said that Chinese Ambassador has made it clear to him that they have no role to play in finalising route of the said project. Pakistan can adopt route whichever is in favour of the project. Sardar Fateh Muhammad told the committee that the Gwadar-Kashghar route should not be re-designed, as the old route would not only benefit the people of Balochistan, but it is equally beneficial for the people of Khyber Pakhtunkhawa.
Senator Talha Mehmood apprised the members that the old route passing through Dera Ismail Khan and Quetta would benefit the Punjab and KPK the most and it would further augment economic activities in the urban areas; whereas the re-designing of the route would further increase its construction cost. Senator Ilyas said that re-designing Gwadar-Kashghar route will swell its cost.
Majority of members of the committee recommended restoration of old route for Gwadar-Kashghar route. Senator Kulsoom contended that it would further increase frustration among people of Balochistan if they were deprived of the benefit of Gwadar airport and Gwadar-Kashghar route. Senator Sughra Imam said that Minister wanted to change Gwadar-Kashghar route on the basis of some objections. Minister for Planning and Development informed the committee that a record of Rs 23 billion allocation has been made for FATA for 2014-15. The government would ensure adequate share to the FATA for its development projects.
Later talking to media, Minister for Planning said that no route has been changed for Pak-China Economic Corridor. There are two routes ie one is eastern and the second is western route. We want Pak-China trade links like web of arteries to ensure smooth connectively between the two countries. For example we have national highway, Indus highway and motorway, showing alternate links with China. Another route is under consideration which would also touch the Pashtoon belt of Balochistan, he added.
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