BR cited Mr Saleem Mandviwalla chairman of the Board of Investment as saying that 2 Russian industry giants are likely to invest in construction of Iran and Pakistan gas pipeline and expansion in Pakistan Steel Mills Corporation if Pakistan agrees to provide them sovereign guarantees.

He said that the final decision to allow participation of the Russian companies in the mega projects of gas pipeline and steel mills would be taken during the visit of President Mr Asif Ali Zardari in January 2011. The President's January visit to Russia is being termed as significant in the background of Pakistani delegation's recent visit in September 2010.

Mr Mandviwalla said that the delegation had met with the chairman of Gazprom, Zarybezhneftgaz, who agreed to invest in the energy sector in Pakistan. During discussions, the two sides reportedly agreed to enhance cooperation in the energy sector. Gazprom showed interest in the construction of IP gas pipeline and agreement is likely be signed in the coming visit of the President if the two sides agreed.

Gazprom is a state owned company which has the capacity to build mega gas pipelines under sea and offshore. Another Russian company, Tyazhpromexport has been requested to invest in expanding the production capacity of Pakistan Steel Mills Corporation and transform it into a profit generating entity.

(Sourced from Business Recorder)