Pak Finance ministry reluctant to spend USD 300 million on Gwadar pipeline

, 1:23 PM IST
A ship is seen anchored at Pakistan's Gwadar deep-sea port on the Arabian Sea March 19, 2007. Pakistan tightened security around a coastal town in Baluchistan province on Monday, a day before the opening of a port authorities hope will bring prosperity to the remote and troubled region. REUTERS/Stringer (PAKISTAN)

Islamabad: Pakistan’s Finance Ministry has indicated its reluctance to provide 300 million dollars to the petroleum ministry for executing the two billion dollars Gwadar liquefied natural gas (LNG) pipeline project.

The ministry is reportedly delaying the release of the funds because it appears to have spent the entire cess collection from gas consumers to bridge the budget deficit,reports the Dawn.

The Ministry of Petroleum and Natural Resources had reportedly approached the finance ministry earlier to seek the release of the gas infrastructure development cess (GIDC) collection for spending on planned gas import projects.

The Sharif government is reportedly seeking to negotiate the Gwadar pipeline cost at Rs. 183.86 billion.

The China Petroleum Pipeline Bureau is expected to provide 85 percent of financing, while the balance 15 percent is to be borne by Pakistan. (ANI)