China offers 500 million-dollar loan to Pak for IP gas pipeline project

By ANI and Yahoo News.

In a major development, China has offered a 500 million dollar loan to Pakistan for the controversial Iran-Pakistan gas pipeline project, which was launched despite strong objections from the United States.

Pakistan had earlier planned to generate the billion dollars through the tax and Iran will be putting in 500 million dollars, reports The Express Tribune.

.
This development comes days after Pakistan handed over to China control of its key Gwadar port in Balochistan.
.
Islamabad and Tehran had formally launched the project on Monday in an elaborate groundbreaking ceremony held at the Pakistan-Iran border.
.
Petroleum ministry officials confirmed that Pakistan is in the middle of procuring compressors and pipelines from a Chinese company and Iranian company Tadbir will do the construction.
.
The 1,600-kilometre pipeline, projected to cost a whopping $1.5 billion would enable the export of 30 million cubic meters of Iranian natural gas to Pakistan daily. The country hopes to overcome its energy crisis with the 4,000 Megawatts capacity of this project.