ISLAMABAD: The Federal Cabinet has given the approval to award the contract for the Iran-Pakistan gas pipeline to an Iranian company, DawnNews reported on Wednesday.

A session of the cabinet approved the Iran-Pakistan gas pipeline project, also approving its contract to be awarded to Iranian company ‘Tadbeer’.

The company will be involved in engineering, procurement and commissioning works for the project.

Speaking at a press conference Wednesday, Federal Information Minister said that the Pak-Iran gas pipeline project is a 1.5 billion dollar project and the government of Pakistan would arrange funds for the project and a special committee has been formed under the chairmanship of finance minister for this purpose.

Kaira said that the federal cabinet has now formally given approval for construction of Pak-Iran gas pipeline and work on the project will start soon.

Iran has offered Pakistan financing support of about $500 million.