Pakistan and Iran on Monday resolved all issues on the Iran-Pakistan-India (IPI) gas pipeline project, and agreed to ink an agreement soon, the Associated Press of Pakistan (APP) reported on Monday.

Pakistani President Pervez Musharraf and visiting Iranian counterpart Mahmoud Ahmadinejad, after talks in Islamabad, told the media that the 7.5-billion-dollar project will help meet future energy needs of Pakistan, the official news agency said.

The talks between the heads of state "paved the way for inking an agreement soon at a mutually agreed date in Tehran," APP added.

The IPI gas pipeline project, which has been under discussions since 1994, is to deliver natural gas from Iran to Pakistan and India.

Ahmadinejad arrived in Pakistan's capital Islamabad on Monday morning on a stopover visit to the country.

After the stopover in Islamabad, Ahmadinejad will proceed to Sri Lanka to inaugurate some projects completed with Iran's assistance.

Iran also agreed to provide 1,100 MW of electricity to Pakistan to help it overcome the shortage, particularly in areas adjoining Iran, APP said.