Fostering ties, Iran offers to fund pipeline in Pakistan

Pakistani President Asif Ali Zardari, center, holds the hands of Afghan President Hamid Karzai, left, and Iranian President Mahmoud Ahmadinejad at a trilateral summit on Afghan stability Feb. 17, 2012.

/ AP

Iran's president Mahmoud Ahmedinejad has quietly offered to finance the Pakistani portion of a multinational gas pipeline project opposed by the United States, in a strong signal of Tehran's intent to build closer ties with its neighbor.

Ahmedinejad left Pakistan Friday after meeting with Pakistan's president Asif Ali Zardari and Afghan president Hamid Karzai, a trilateral summit seeking a formula to stabilize conditions in Afghanistan.

A joint statement issued by Pakistan's foreign ministry after the meeting said the three countries agreed to "develop mutually beneficial cooperation in the energy, mining and minerals, agriculture and other sectors" without providing further details.

But an Iranian official in Islamabad who spoke to CBS News on condition of anonymity said, "The IP [Iran-Pakistan] gas pipeline is very close to our heart. President Ahmedinejad indicated Iran's intent to finance the project on the Pakistani side if Pakistan has difficulty with finding the money".

Though an exact cost is not known yet, the Iranian official said that "Iran was ready to start from financing $1.5 billion for the project and build it up further if needed."

The project is proposed to transport surplus gas from southern Iran. In the past, Pakistani officials have speculated that the supply line could be extended to India and China.

A Pakistani official who also spoke to CBS News on condition of anonymity confirmed the offer, though he said "it is still early to tell if Pakistan will go ahead with the project" in defiance of the U.S. In the past, U.S. officials have opposed the plan on the grounds that it will inject large new revenue in Iran's ailing economy and further embolden the hard line Islamist country.

Asked about the pipeline Friday, Zardari said, "Iran and Pakistan are neighbors. We need to interdepend on each other. Our bilateral relationships cannot be considered or undermined by any international pressure of any kind."

Last summer, Iranian officials surprised their Pakistani counterparts when they disclosed that Iran had already built the pipeline to within 50 kilometers of Pakistan's border. The revelation from Iranian officials came just months after Pakistan experienced ugly riots in some of its larger cities when protests broke out over gas shortages.

The Pakistani official who spoke to CBS News said, "Theoretically, it would make a great deal of sense for Pakistan to import gas from Iran. The U.S. may oppose the project, but the Americans have no alternative to offer for providing relief to Pakistanis. When people are protesting because they can't cook food at home, the compulsion to do whatever is necessary becomes very strong."

But a western diplomat in Islamabad who also spoke to CBS News on condition of anonymity said Iran is facing growing economic difficulties due to its international isolation.

"Promising billions of dollars for a gas pipeline project to Pakistan is much easier to talk about than being done," he said."Even if the U.S. was to withdraw its objections, we can't imagine this project to be put in place overnight."

[worldcitizen1]

This might be a clue about who really makes US GOV. policy. How could this be a bad thing for the consumers of petroleum products worldwide?

[ratee-2009]

The imperialist policeman of the world USA will fail as it wants to control everything in the world with a bankrupt economy.

[Jesus_to_ground_control]

Free Lunch

How will the Pakistani protect the pipeline from their own Taliban? They will probably try to take it over. If they can't they will destroy it...

[quark13]

I must be the most naive person in the world as I cannot see why the United States would oppose this project as it will in some small way raise the standard of living of its citizens and from a capitalist point of view provide more consumers.

[PourpaixPourpaix]

What, is there some hereditary trait in Western politicians to go to any extent to cause suffering in Iran? We invade, implement coups, show puppet governments how to use iron-fisted rule, constantly intimidate by running warships through their territorial waters without permission, shoot down Iranian airliners and say so what. Stir the bee's nest until they sting us, then blame the bees and use it as an excuse to torment them further. We want their people to starve because their government didn't recognize us as their masters and obey. America, the repugnant bully.

[karek40]

Sounds to me like a steady source of revenue for Pakistan and a steady source of revenue for Iran.

[oldman67]

The U.S. has nuclear plants and oil pipe line running across America.Today a XL pipe line from Canada to Texas is being discussed. Why would Iran not want nuclear power as well as an oil pipe line? The South Pars/North Dome field is the largest natural gas field in the world shared by Qatar and Iran."I should welcome almost any war for i think this country needs one." T. Roosevelt. 1897-1898. The U.S. invaded the Philippines killing 1.2 million civilians. Every time the economy is in severe distress the U.S. is in a war. Visit www.addictedtowar Read the free illustrated book to see why America goes to war. think about this. "Military men are just dumb stupid animals to be used as pawns in foreign policy." Henry Kissinger. This man has helped shape our foreign policy since the 70's. " The News Media and major corporations sold the Iraq war." Tommy Franks. "It is fortunate for the governments that the masses don't think." Adolf Hitler.we need to ask ourselves who benefits from a war with Iran.It is along list of corporations and it is not the American public.during the Iraq war there was once 200,000 contractors in Iraq.Many of our troops died for these major corporations who make the product necessary for wars.

[Samlv]

Sounds like something which is very susceptible to uncontrolled energy releases.