Indian oil minister Mani Shankar Aiyer plans to travel to Islamabad in May to hold talks to build a $ 4 billion pipeline to carry Iranian natural gas through Pakistan to South Asia. The proposed project, earlier regarded as a pipe dream because of political tensions between India and Pakistan, has been actively discussed by the nuclear-armed rivals, since they began a cautious peace process last year.
Aiyer will visit Tehran in June to further discuss the deal for the import of natural gas from Iran via a 2,600-km pipeline, 760 km of which would pass through Pakistan.
Indian officials say the project should be accompanied by other initiatives from Pakistan, such as allowing India transit rights for movement of goods to central Asia, and lifting a ban on imports of Indian goods, such as diesel.
But Islamabad says there should be no strings attached to the pipeline project, which itself will be a major boost to ties between the neighbours.
"There are a whole lot of issues that will be discussed when I visit Pakistan," Aiyer told reporters before leaving for Saudi Arabia on Monday.