Iran has set March 19 as a deadline to settle the gas pricing formula with Pakistan for a pipeline between the two countries, a government official in Islamabad said Thursday.
"Iran has given a deadline for fixing the gas price and we are trying to have a formula approved and sign some contract within the next 10 days," Petroleum Secretary Mahmud Saleem told the Senate Committee of Petroleum.
However, he said that the price demanded by Iran is too high.
Iran is demanding a price equivalent to the oil price of $95 per barrel, Petroleum Advisor Asim Hussain told reporters separately.
"The price demanded by Iran is not viable to offer to domestic consumers, who are on subsidized rates, while the only option left is to offer it for electricity generation," Saleem said.
The Ministry of Petroleum will refer the recommended price to the Cabinet for approval, he added.
Earlier, Pakistan had considered scrapping the proposed Iran-Pakistan-India gas pipeline.