ISLAMABAD: The caretaker Minister for Petroleum and Power, Muhammad Ali, is likely to visit Tehran next week to attend 23rd International exhibition of electricity industry of Iran on November 14-16, 2023, well informed sources in Ministry of Foreign Affairs told Business Recorder.
On November 6, 2023, the Ambassador of Iran to Pakistan Dr Reza Amiri Moghaddam called on caretaker Federal Minister for Power and Petroleum Muhammad Ali and extended invitation to him, the sources added.
The caretaker Minister, who has already undertook several visits abroad since assuming the charge of both Divisions, is also expected to take a delegation with him for discussions on the issue of “suspended” Iran Pakistan Gas Pipeline, import of LPG, issues related to smuggling of petroleum products to Pakistan, electricity supply cooperation, and due payment of Iranian power company. Also the issues of trade and opening of banking channels will be part of discussions.
Iranian envoy for enhancing bilateral trade to $5bn
According to sources, Iranian embassy in Islamabad has conveyed the Ministry of Petroleum of Iran’s readiness to hold 3rd IP Technical Meeting in the course of visit of caretaker Minister for Petroleum and Power Muhammad Ali and the accompanied delegation.
In the meantime, a meeting between Javed Owji, Minister for Petroleum and Pakistan’s Minister for Petroleum and Power, has been scheduled for November 14, 2023.
Meanwhile, as per agreement reached between Tavanir Co of Iran and CPPA-G of Pakistan, Tavanir Co has requested to receive the original copies of amendment document No. 8, 9 of the agreement for the sale of Iranian electricity to Pakistan. It is not clear if the CPPA-G has shared documents related to amendments in the electricity trade pact.
Last year, Pakistan and Iran had agreed to resume negotiations for implementation of Iran-Pakistan (IP) Gas Pipeline Project, possibility of starting Electronic Financial Messaging System (SEPAM) and achieving barter trade target of $4 billion.
The work on IP gas pipeline was stalled due to US sanctions on Iran as no Pakistani bank was ready to take the risk of financing the project. The project has always been part of discussions at the high-level interactions between both the countries but no progress has been witnessed since years. The issue of IP gas pipeline is always on the agenda of meetings between the authorities of both countries as no meaningful progress has been witnessed due to US sanctions.
In June, 2023, both held discussions on (i) areas of trilateral cooperation between Pakistan, Iran and China; (ii) discussion to identify and define cooperation models in the field of investment with focus on financial and banking interaction, beside specific discussion on Pakistan Iran (PAIR Investment Company);(iii) exchanging information and investment opportunities between Pakistan and Iran;(iv) discussion on Memorandum of Understanding (MoU) for joint cooperation on establishment of joint free zone on Gabd-Reemdan border; and (v) negotiations on Pakistan-Iran Bilateral Investment Treaty (BIT).
