In a statement made by the Iranian Embassy to the Nikkei on behalf of Seyed Mohammad Ali Hosseini, Iran`s ambassador to Pakistan, it was said that the details of the agreement had been verified by representatives of the Chinese and Iranian governments and that they had not yet been definitively clarified. In February 2007, India and Pakistan agreed to pay Iran $4.93 per million UA ($4.67/GJ), but some details of price adjustment remained open for further negotiations.  Since 2008, Pakistan has been the subject of intense criticism in the United States for any form of energy agreement with Iran. Despite years of delays in negotiations on the IPI pipeline project, Pakistan and Iran finally signed the initial agreement in Tehran in 2009. The project, described as a peace pipeline by officials from both countries, was signed by President Zardari and Iranian President Mahmoud Ahmadinejad. In 2009, India withdrew from the project on price and security issues and signed another civil nuclear agreement with the United States in 2008.  However, in March 2010, India asked Pakistan and Iran to conduct trilateral talks in Tehran in May 2010.  Chinese President Xi Jinping seems ready to take control of the United States. The proposed draft economic and military agreement with Iran sets out Beijing`s plan to expand its presence in the Middle East, as was the case in South Asia. Moreover, China seems to want to occupy territories that the United States has either evacuated or for which it has shown less interest.
But this expansion may have its own complications due to the inherent tensions and competitiveness of regional players. The terms of the agreement also give China access to Iran`s crude oil and gas supply at reduced prices for the next 25 years. Over the past two years, political uncertainty, IMF-imposed austerity measures and concerns about Pakistan`s widening current account deficit have increasingly contributed to the expansion of the CPEC. Both sides publicly highlight the significant progress made within the CPEC and Prime Minister Imran Khan recently promised to complete the CPEC “at any cost.” Over the past month, there has been a flood of activity and agreements have been signed on two failed hydroelectric projects. Despite the progress made, there is great irritation in the relationship. A leaked report accuses Chinese state-owned enterprises of financial “bad practices,” including rising construction costs for two of the coal-fired power plants. Chinese SO has not yet responded to these accusations, as they are calling for the renegotiation of some of the power purchase contracts (PPPs). In theory, the Iran-China agreement could give Pakistan more influence in these negotiations. Parts of Pakistan`s security community have expressed concern about the Iran-China agreement, which is based on the realization that Beijing could withdraw its agreement with India on Chabahar. There is also hope for better relations between Tehran and Islamabad, as the two Muslim states are now part of the BIS roadmap. Pakistani commentators speak of the BIS only as a major economic initiative and not as far as China`s broader geopolitical and geostrategic ambitions are concerned.