Pakistani gov't: No restriction on oil imports from Iran

Islamabad government officials dismissed the US-led sanctions on trade with Iran, and told the country's Senate that they have no restriction on import of Iranian oil.There is no restriction on Pakistan to import oil from Iran, the lawmakers were told in the Upper House of Parliament when they asked the government to clarify its position with regard to international sanctions against Iran. During the question hour, Senator Safdar Abbasi demanded the government to clarify its position whether Pakistan would keep its relation intact with Iran or cut ties off under the international pressure. The House was informed in writing that Pakistan Refinery Limited has a long-term contract for the import of 12,000 barrels per day light crude oil from Iran. However, due to current US/ European Union sanctions on Iran, the refinery is facing difficulties in opening L/C, therefore, they have limited oil imports from Iran since November 2010. Federal Minister for Petroleum and Natural Resources Asim Hussain clarified that there was no restriction on Pakistan about the import of oil from Iran. He admitted that there were some banks (related to US) that were reluctant to open LCs for oil import. Second thing for stopping of the Iranian oil import is that it is not compatible with oil available in Pakistan, he said, adding that there was a single refinery in Karachi which refined Iranian crude oil, and it had been closed due to some technical reasons. He further said he was unable to clarify further because it was a sensitive issue and of national importance. About Iran-Pakistan gas pipeline project, the minister said the project would be completed under sovereign guarantee of the two governments. He assured that it would be completed in time. He also informed the House that Pakistan was in touch with Iran over currency swap and similar type of agreement had already been signed with China.