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Pakistan: Gas price deal reached

Pakistan has agreed to a pricing formula for importing natural gas from India
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Najib Razak, CREDIT: shahreen / Shutterstock.com

Pakistan has agreed to a pricing formula for importing natural gas from India, a significant advance in confidence-building measures between the two nuclear-armed rivals who have fought four wars since 1947. In 2012 India offered to export up to five million cubic metres of gas a day to Pakistan through a 100-kilometre pipeline being built between Jalandhar in India to Wagah, just east of Lahore in Pakistan. The deal stalled over failure to agree on a price. The agreement is seen as preparing the ground for an agreement by which India will import gas from Turkmenistan by pipeline across Afghanistan and Pakistan.