Iran-based private companies have already undertaken work related to the IP pipeline construction in Pakistan, after the country asked for Iran’s assistance to construct the pipeline.

As a part of the contract between the two countries, Iran will export 21.5 million cubic meters of gas per day to Pakistan as of 2014.

The participating companies of both the countries will form a joint venture to complete the project work in Pakistan.

Iran will build 300km of the remaining IP pipeline to the border of Pakistan, whereas Pakistan will construct 700km of the pipeline inside the country to transport gas.

In addition, Iranian banks will also help Pakistan with the financial resources for the construction work.

Iran has offered a loan of $250m for the project work as well as equipments, and will further help Pakistan with a loan of $500m.

Iran will also fund the remaining financial needs of the project, from the gas consumption taxes in Pakistan.