Talks between the governments of Iran and Pakistan began in 1995.  An interim agreement was signed in 1995. The agreement included the construction of a gas pipeline from the South Pars gas field to Karachi, Pakistan. Subsequently, Iran proposed to extend the pipeline from Pakistan to India. A provisional agreement between Iran and India was signed in February 1999.  As part of the agreement, Lead Pharma receives a down payment of 10 million euros and can receive research funds and preclinical payments. In total, potential payments – including research, development, regulation and distribution – could reach 260 million euros plus royalties for global turnover. In January 2010, the United States asked Pakistan to abandon the pipeline project. If the project were cancelled, Pakistan would receive assistance from the United States for the construction of a liquefied natural gas terminal and the importation of electricity from Tajikistan via the Wakhan Corridor in Afghanistan.  On 16 March 2010, Iran and Pakistan signed an agreement on the pipeline in Ankara.  In accordance with the agreement, each country must complete its section by 2014.  In July 2011, Iran announced that it had completed the construction of its section.  If Pakistan fails to meet its commitment to complete the pipeline by the end of 2014, it will have to pay a daily fine of $1 million to Iran until it is finalized.
 On March 13, 2012, Pakistan`s Ministry of Finance announced that private investors were less interested and that the government may have to impose a consumer tax or seek agreements between the Iranian, Chinese and Russian governments for the construction of the pipeline. On 29 March, it was announced that officials from Pakistan`s oil ministry would travel to Russia in early April for talks with Gazprom.  The Pakistani daily PakTribune then reported on 7 April in an article that Gazprom would finance and build the pipeline. This would require the repeal of the rules of the public procurement regulator, which require an international tender for a project of this magnitude. Such authorization is requested from the Economic Coordination Committee at its next meeting. The article also indicated that the reason the private consortium would no longer contribute to the project was the resistance of the United States.  On 27 May 2013, Iranian Deputy Oil Minister A. Khaledi, in a letter to the Pakistani government, expressed concern about the delay in launching the Pakistani part of the pipeline.
He said that after an agreement between the two countries, they should choose government facilities for the construction of the second part of the pipeline.