The Iranian regime has canceled a planned $500 million loan to Pakistan to build part of a pipeline to bring natural gas from Iran.
Deputy Oil Minister Ali Majedi said his regime has no obligation to finance the Pakistani side of the project and also doesn’t have the money.
Iran has already invested over $2 billion to construct the Iranian side of the pipeline.
But there are serious doubts about how Pakistan could finance the $2 billion needed to construct the pipeline on its territory.
“Pakistani officials were told in recent talks that, given the sanctions, Iran is not able to finance construction of the pipeline (in Pakistan) and has no obligation to do so,” he said. His comments were posted on the oil ministry’s website, Saturday.
The U.S. has opposed the project but leaders of both Iran and Pakistan have vowed to implement what they refer to as the “peace pipeline.”
