Pakistan’s Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said Iran-Pakistan gas pipeline project will be completed by June 2018, Pakistani news agencies reported on Friday.

The minister made the remarks while briefing the diplomats, civil society and the media on the government’s performance and strategy at the Prime Minister Office on Thursday.

The project’s capacity is estimated to be 0.25 – 0.75 billion cubic feet per day, he said.

Touching upon the relationships between the two countries, Abbasi said, the U.S. sanctions are still causing problems for economic and financial relations between Pakistan and Iran. However, talks between Tehran and Islamabad on completion of the gas pipeline project is going on, IRNA reported.

Abbasi also noted that two main obstacles in the way of completion of IP gas pipeline are unresolved issue of trade in dollar and also the possibility of sanctions against Iran being reversible.

“So far Pakistan has not been able to convince investors to invest on the gas pipeline project” he added.

Iran and Pakistan signed an agreement for the construction of the gas pipeline in 1995. Later, Iran made a proposal to extend the pipeline from Pakistan into India. In February 1999, an accord between Iran and India was signed.