The two sides also agreed to hold further talks on the subject to reach a final conclusion to make the gas pipeline project a reality. Sources said that the Indian petroleum minister is likely to visit Iran to discuss the matter with his Iranian counterpart shortly. He may also visit Islamabad for further discussion with the Pakistani authorities.
India had linked joining the gas pipeline project with the granting of MFN status by Pakistan. This was a hard stance as Islamabad is not in a position to grant New Delhi such a concession at this point of time.
Now after quick switch over and unbundling of gas pipeline project from the MFN condition Islamabad considers it as a positive development. Pak-Iran gas pipeline is basically a tripartite project and New Delhi wanted to become party to it at an early stage. India's participation could add to the commercial value of the project.
But political differences between New Delhi and Islamabad changed the situation altogether. Both the sides were reluctant to move forward to shun the atmosphere of mistrust.
The recent development of confidence-building measures (CBMs) have again brought the project in the limelight and both Islamabad and New Delhi are re-positioning themselves to ensure positive progress in this area.
The joint statement issued in Islamabad on the conclusion of Natwar Singh's visit also highlighted the importance of extending Pak-Iran gas pipeline to India.