KARACHI: Construction of a multibillion-dollar project with Russia to transport 1.6 billion cubic feet per day of regasified liquefied natural gas from the cities of Karachi to Kasur will commence in July this year, a top Pakistani official said on Sunday.
The project, earlier called the North-South Pipeline but recently renamed the Pakistan Stream Gas Pipeline Project, will deliver gas from Pakistan’s coastal regions to industrial areas in the north. It has been held up since 2015 due to a disagreement over fees and United States sanctions against Russian state conglomerate Rostec.
In November, Russian officials visited Pakistan for three-day-long negotiations to finalize work on the project, the biggest infrastructure deal with Russia since the early 1970s when the Soviet Union set up the Pakistan Steel Mills industrial complex at Port Qasim, near Karachi.
“Yes, we are working on the pipeline with Russians,” Nadeem Babar, special assistant to the prime minister on petroleum, told Arab News. “The construction of the 1,100 km long pipeline that will transport 1.6 bcfd gas will start in July.”
Babar said it was too early to estimate the cost of the project, but officials had earlier put it between $2-3 billion. Documents submitted to the Supreme Court of Pakistan by the Pakistani government show the cost of the project was estimated at $2.7 billion.
The project will be implemented through a special purpose company to be incorporated in Pakistan, with Pakistan holding majority shares.
During the November 2020 meeting, officials from both nations agreed to sign a protocol for amendment in an Inter-Governmental Agreement (IGA) signed in 2015 to reflect a revised implementation structure for the project after requisite approvals from the two governments.
Indigenous natural gas contributes around 38 percent to Pakistan’s total primary energy supply mix. Pakistan produces around 4 billion cubic feet per day against an unconstrained demand of 6 bcfd and imports gas to meet the deficit, particularly when demand peaks in winters.
Pakistan has become an emerging buyer in the international LNG market over the last few years, with an increasing gap between demand and supply of gas.
The power sector is Pakistan’s largest natural gas consumer, followed by residential consumption and the fertilizer industry.
Pakistan says work on Russian gas pipeline project to start in July
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Pakistan says work on Russian gas pipeline project to start in July
- The 1,100 km long pipeline will transport 1.6 billion cubic feet per day of regasified liquefied natural gas from the cities of Karachi to Kasur
- The gas pipeline project is the biggest infrastructure deal with Russia since the early 1970s, when the Soviet Union set up Pakistan Steel Mills
Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport
Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport
- Pakistan is a cash-dominated market where a significant portion of transactions in the informal sector are made without any taxes, officials say
- The move comes amid Pakistan’s efforts to introduce a cashless model at airports under which only digital service providers can provide services
KARACHI: Aik, Pakistan’s first Islamic digital bank, has enabled fully digital payments at Islamabad International Airport to offer travelers and passengers secure, Shariah compliant digital transaction facility.
The development comes amid Pakistan’s efforts to introduce a cashless model at airports across the country, under which only digital service providers can provide services to customers.
Aik, a subsidiary of Bank Islami, said it has onboarded merchants across the Islamabad airport and integrated QR code deployments at key touchpoints to allow passengers and visitors to make secure, seamless, and Shariah-compliant digital transactions at all counters, retail outlets, and service points.
It said the implementation complies with the regulations and framework set by the State Bank of Pakistan (SBP) and is a working model for a large-scale adoption of cashless systems in public infrastructure.
“This deployment reflects our commitment to building practical digital infrastructure that improves everyday transactions,” Aik Chief Officer Ashfaque Ahmed said in a statement.
“By enabling a fully cashless environment at a major national gateway, we are supporting efficiency, transparency, and financial inclusion at scale. This is not only a project; it is a foundation for Pakistan’s cashless future.”
Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted in cash. Officials say many of these transactions are aimed at avoiding taxes.
In recent years, the SBP has taken steps to ensure a transition toward a more cashless economy so that transactions are more traceable, reducing chances of tax evasion and corruption.
By digitizing Islamabad airport, aik said it continues to invest in secure and accessible financial solutions that “expand digital participation and support national economic modernization.”
