Gilani rules out scrapping Iran gas pipeline deal

Islamabad: Pakistan would not abandon its gas pipeline deal with Iran because of unilateral US sanctions, Prime Minister Yousuf Raza Gilani said on Tuesday.

It could however reconsider the deal if warranted by sanctions imposed by United Nations, Gilani said in an address to lawmakers here.

He denied reports that quoted him as saying on Monday that Pakistan would comply if US sanctions on Iran hit the deal, following a statement by US president's special representative Richard Holbrooke cautioning Pakistan not to over-commit itself to the $7.5-billion pipeline project.

Gilani said Pakistan was not bound to follow any additional US restrictions on Iran. "We are not bound to follow US sanctions, but if these are put in place by the United Nations, we will consider implementing [them]," he said.

Holbrooke's remarks about the pipeline project on Sunday following his talks with Pakistani leadership drew strong criticism from leaders and legislators of various political parties.

The special envoy had told reporters that legislation for additional sanctions on Iran was under process in the US Congress, which could affect the pipeline deal signed by Pakistan with its neighbour on June 13.

Internal situation

Talking about the internal situation, Gilani said all state institutions needed to work within their constitutional parameters in the larger interest of the country.

He said certain elements wanted conflict between the government and the judiciary but all such attempts would fail.

Gilani said his government was following in letter and spirit all rules and regulation. "We are not lawbreakers ... We are the lawmakers," he remarked.

He reiterated that the government believed in politics of reconciliation and concerted efforts by all political parties to consolidate the democratic system.