Iran and Pakistan I believe have discussed building oil refineries since 1991,and the IPI for about the same duration of time. Both governments in Tehran and Islamabad are corrupt and inefficient, Islamabad more so, that is why such win-win projects have taken so long to materialize.
InceptionThe idea was conceived by a young Pakistani civil engineer Malik Aftab Ahmed Khan in mid 1950s, when an article of his was published by the Military College of Engineering, Risalpur. The article Persian Pipeline also mentioned the method for its protection along the hostile territory by establishing mini battalion-size cantonments along its proposed route through Baluchistan/Sind. The project was conceptualized in 1989 by Rajendra K. Pachauri in partnership with Ali Shams Ardekani, former Deputy Foreign Minister of Iran. Pachauri proposed the plan to both Iranian and Indian governments in . The government of Iran responded positively to the proposal. At the 2012 annual conference of the International Association of Energy Economics, Ardekani backed Pachauri's proposal.
Finally after 22 years the countries have agreed to build a $4 billion oil refinery with a capacity of 400,000 b/pd, boosting the presently stagnant economy of Gwadar.........and its activity well away from the major urban centers of Pakistan.
This will be the biggest investment by a foreign country in Pakistan.
The loans by Iran for the Pakistan section of the IP are also substantial.
This is smart. It is to be noted that attacks on Shia's in Pakistan have increased in recent years, but that wise counsel in Tehran did not allow themselves to be baited by such devious designs.
Instead Iran focused on the strategic needs of the country, which is closer economic relations with Pakistan, and an eventual FTA, with the neighbor.
Iran also needs to invest in the massive Thar coalfields which contain 200 billions tons of coal, for use in Iranian industry, especially the steel sector, and maybe smaller projects in iron ore extraction at Kalabagh, which contain 13 billion tons of high quality iron ore.
Road and rail linkages need to be bolstered as well as joint security in the region.
These things which can be proposed and finalized institutionally by Zardari bhen....it will make him look like a national leader outside of the Pooooooooonjab, for the first. Rather than the beggar looking for more money for his Swiss accounts.
This is also an object lesson for India on how to develop better lasting relations with Pakistan, which aren't derailed by a few incidents here and there by the usual scum that exist in both societies. India is a far richer nation then Iran with a PPP GDP of $5 trillion (march 2013) compared to Iran's $1 trillion PPP GDP.
The USA has terrorized Iran, especially in the SE region, using Jundallah, and the Pakistani Jihadi forces run by CIA funded ISI have killed thousands upon thousands of Shia Pakistanis since the 1980's (Read Hindus).....and yet strategically the primitive mullahs looking at the bigger picture have decided to invest in Pakistan, with one of the biggest investment projects in Pakistan's history by a foreign power.
Iran to build $4-billion oil refinery in Pakistan: Official
Iran has agreed to build an oil refinery in Pakistan with an estimated capacity of about 400,000 barrels per day, a senior Pakistani official says.
Pakistani Prime Minister’s Adviser on Petroleum and Natural Resources Asim Hussain said on Wednesday that the agreement was reached during a meeting between an Iranian delegation led by Oil Minister Rostam Qasemi and Pakistan’s Prime Minister Raja Pervez Ashraf.
Hussain said that the 4-billion-dollar refinery will be constructed in the Pakistani port city of Gwadar.
According to a Pakistani official, a memorandum of understanding (MoU) for setting up the refinery is expected to be signed during President Asif Ali Zardari’s visit to Tehran on February 27.
Qasemi arrived in Pakistan on Tuesday to discuss the Iran-Pakistan (IP) gas pipeline with Pakistani officials.
Iranian and Pakistani officials agreed to provide security for the pipeline, which will enable the export of 21.5 million cubic meters of Iran’s natural gas to Pakistan on a daily basis.
According to the deal, an Iranian-Pakistani consortium will complete the process of constructing the pipeline in 15 months.
On Wednesday, the consortium started the construction of the Pakistani section of the pipeline, which stretches from the border between the two countries to Navabshah region in Pakistan and covers 781 kilometers (km) of the total 1,881-km length of the pipeline.
Iran has already built more than 900 kilometers of the pipeline on its soil.