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| The Iran-Pakistan gas pipeline was inaugurated by former Pak-Iran presidents Asif Zardari and Ahmadi Najad |
Tehran : Iran has said that she is canceling the loan of about $ 500 million to Pakistan to build the proposed gas pipeline in Pakistani side as Iran is not obliged to do so.
Iran's Deputy Oil Minister Ali Majedi says Iran has no obligation to finance the Pakistani side of the project and also doesn't have the money.
He said Tehran will demand compensation if Islamabad fails to take Iranian gas by end of next year.
Pakistan is required to finish construction of the pipeline on its territory by the end of 2014, under a valid contract.
Pakistan is already under mushroom of energy crisis and gas pipeline would help Pakistan to overcome the crisis.