The natural gas sector has seen rapid growth in both India and Pakistan. In both the countries, further growth in this sector would depend on the success of exploration ventures or on import of gas. Import of gas through pipelines from the middle-east and central Asia is economically feasible. However, the success of these projects depends critically on cooperation between India and Pakistan. The possible reasons why such cooperation has not been forthcoming are examined. While earlier writers have taken the view that Pakistan needs to import gas just as much as India, this paper argues that Pakistan may not need to import gas till 2010. This could be a reason behind the stand taken by Pakistan on these projects. The question of security of supplies is examined from the Indian point of view and a set of policy initiatives is recommended to Indian policy makers.