20000221

Revival of Iran-Pak Refinery project Official team leaving for Tehran

next month

ASHRAF KHAN

KARACHI: An official delegation led by the Minister for industry and Production is expected to leave for Iran next month to revive 1.15 billion dollar Iran-Pak Refinery project, it is learnt.

The project is lying under red tape despite the Chief Executive had assured the Iranians in his one of inaugural foreign visits to Iran of putting the project on rails again. A joint venture agreement between the two countries was inked four years ago envisaging installation of six million tonnes refinery along the coastal area, about 45 km off Karachi. Iranian heavy crude will be the feed stock of the refinery.

Though the agreement covers all the major international contractual clauses, some of the issues are still to be resolved by the two sides.

"The minister is expected to leave for Tehran some time next month and you will hear good news about the project then", an Islamabad-based official told Business Recorder.

The Government of Pakistan is considering the energy sector as one of the core sectors, which carry high potential of foreign capital mobilisation. The refinery project has been crucial for the economy in view of growing influence of the petroleum products on the macro policies. There has been no mega project in the southern part of the country for decades. The refinery is expected to bring various downstream projects on line. A floating port in the high seas, costing 350-400 million dollars is also under consideration which could handle the bulk oil shipments for the refinery. Nevertheless, the port installation is also being considered on stand-alone basis.