Sources said that Pakistan's official delegation, which left for New Delhi on Wednesday to attend the working group meeting, would try to convince the Indian side that commercial guarantee would be as workable and solemn as sovereign since the companies or groups which would extend the assurances would be acting on behalf of the respected states.
Sovereign guarantee issue is impeding progress on IPI talks as none of the parties to the project is ready to buy this idea, in the given situation, when it's very difficult to foresee the future developments in the region.
Sources said that Pakistan's delegation, headed by Petroleum Secretary Ahmed Waqar, would float the new concept of commercial guarantee at the working group meeting.
India is demanding sovereign guarantee from Pakistan to make sure that gas supply to the project remains smooth and uninterrupted for specified timeframe. Pakistan is not ready to accept New Delhi's this demand unilaterally. Its argument is that since all parties to the project would enter into a back-to-back agreement it would not accept sovereign guarantee unless it got the same from Iran in case of any interruption in supply to the pipeline occurred on its part.
The working group meeting is also important as it's going to finalise the pricing formula for the project. India and Pakistan are very close to reach an understanding on gas pricing formula for IPI. However, they are yet to go through extensive talks to reach some understanding on other tricky and difficult questions.
Some of such issues are transit fee that Pakistan is demanding from India to provide it a route for gas supply, timely completion of the pipeline in respective areas and bring it to the border of next neighbour to connect it to his distribution system.
There are certain issues on individual basis for each partner as well. Each country will have to raise funds from the donors to guarantee money to timely lay down the part of the pipeline in its respective territory and them workout a mechanism for foolproof security to avoid any damage and at the same time penalty from the next door buyer.