At the fourth bilateral in February 2007, Pakistan sought $1.57 per million British thermal unit (mBTU) for supply of gas over 1,035 km pipeline it would lay in Pakistan. India, using estimates prepared by consultant Gaffney Cline & Associates, offered a transmission charge of $0.69 per mBtu.

As for the transit fee, Pakistan wants it pegged at 10 per cent of the delivered price of gas to India which says it would pay 5 per cent considering the economic benefits to Pakistan from the pipeline. As Pakistan was not purely a transit country and was also a gas recipient, the transit fee should be lower, India argued.

Ministry sources said that Khan’s request was sent to the Ministry of External Affairs on Friday for approval. “Since the present government in Pakistan is a caretaker and polls are scheduled on February 18, it is for the MEA to decide whether any talks at this stage would be meaningful,” they said.