Blog: Is Pakistan leaving India out of the lurch?

Is Pakistan leaving India out of the lurch?

Iran and Pakistan agreed to develop a $7 billion gas pipeline without India. India stayed away from this week's talks in Tehran on the proposed $7 billion pipeline, saying it wanted to agree transit costs through Pakistan on a bilateral basis first, an Iranian official said. But he said India had not said it was quitting.

Negotiators settled differences in talks over four days that ended yesterday and expect to sign a letter of understanding by the end of October, the Iranian Oil Minister's special representative Hojatollah Ghanimifard said.
Iran has the world's second-largest gas reserves after Russia. But sanctions, politics and construction delays have slowed its gas development, and analysts say Iran is unlikely to become a major exporter for a decade.

The 2,600 kilometer pipeline will initially transfer 60 million cubic meters of gas daily to Pakistan and India, half for each country. The pipeline's capacity would later rise to 150 million cubic meters. Is Pakistan holding out for more than just gas from this deal?