Gilani leaves for Iran today

Prime Minister Yousuf Raza Gilani, will be arriving in Tehran for an official three-day visit on Sunday.

According to official sources, Gilani would discuss Tehran-Islamabad relations and the regional importance of the two countries with Iranian officials during his trip.

Gilani is also expected to visit the city of Mashhad in Khorasan Razavi Province and the Gilan Province in the north, IRNA reported.

According to FARS news agency During the two-day visit, which will take place at the invitation of Iranian First Vice-President Mohammad Reza Rahimi, the Pakistani premier will attend meetings with senior Iranian officials, including President Mahmoud Ahmadinejad and Parliament Speaker Ali Larijani, to discuss expansion of bilateral relations and exchange view over the latest developments in the region.

Gilani will be accompanied by his country's oil and foreign ministers as well as Baluchistan governor.

The Iran-Pakistan pipeline is expected to be a key part of the agenda of the talks. The pipeline was originally meant to have India as its terminal location but New Delhi has not been able to make a firm commitment on the project to date.

Iran has already built its portion of the gas pipeline up to the Pakistani border. The Pakistani portion of the pipeline is expected to cost $1.65 billion, little more than a fifth of the total $7.5 billion price tag of the whole project. The total cost may rise after the completion of a feasibility study. It is expected to begin supplying gas to Pakistan by the middle of 2014.

At its peak, the pipeline is slated to supply up to 55 billion cubic feet of gas from Iran's South Pars field to Pakistan. That amount is expected to cover about 20% of Pakistan's current demand, and would not be enough for the rising need for gas in the Pakistani economy.

Pakistani government officials say all of the supply from the Iranian pipeline will be dedicated for power production and would be expected to generate up to 5,000 megawatts.

Production costs for gas-fired power plants are about 35% less than those for oil-fired power plants.

According to Foreign office spokesperson Tehmina Janjua one of the main reasons for Gilani's visit was the 18th session of two countries' joint economic commission.

She added that giving priority to improvement of transportation and transit routes, increasing energy projects and expanding economic cooperation between Iran and Pakistan were among the achievements of the commission.

Source: INN