Iran-Pakistan gas pipeline; resolving the energy crisis
Iran-Pakistan gas pipeline; resolving the energy crisis
Editorial
Editorial

There are reports in the media that Pakistan is sending a high powered delegation to Tehran to reopen and renegotiate the terms and condition of Iran-Pakistan gas pipeline. The delegation is expected to visit Tehran soon following a deadlock between the two countries.

 

There are reports in the media that Pakistan is sending a high powered delegation to Tehran to reopen and renegotiate the terms and condition of Iran-Pakistan gas pipeline. The delegation is expected to visit Tehran soon following a deadlock between the two countries. Iranians are of the opinion that Pakistan Government was afraid of the Saudi and American reaction if Pakistan buys gas and electricity from Iran or make any effort to boost the Iranian economy. Comparatively, the previous PPP Government under Asif Ali Zardari and Syed Yusuf Raza Gilani was bold and nationalist in the Pakistan context and they took decision to buy Iranian gas for which agreements were signed. The PPP Government ignored the negative reaction from Saudi Arabia and also from the United States and concluded the agreements in the interest of Pakistan and its people. The Iranians, on their part, were generous too and they offered expertise and credit facility to build the Pakistan section of Iran Gas Pipeline—from Gabd to Nawabshah. The Iranian Government also offered a credit facility of 500 million US dollars to build the Pakistan section of gas pipeline. Iran was confident that Pakistan Government would not come under pressure from Saudi Arabia, its ally, and the United States and constructed the gas pipeline from the main source of the gas to Bandar Abbas, Iranshahr, a township in the heart of Iranian Balochistan, and Pakistani border point near Gabd. Iran made a huge investment which is estimated to be more than $ 3 billion. Pakistan Government, following the general elections and formation of new PML-N Government in Islamabad did not move an inch forward to build the pipeline. The PML Government shown no interest to build and complete Iran Gas pipeline. On the contrary, the Pakistan Government put all its energies and resources to Karachi-Lahore gas pipeline and concluded as agreement with the Qatar to supply LPG for next 15 years. The Government of Pakistan will be spending more than 16 billion US dollar on the project. But it was reluctant to buy and use cheaper gas available right on the Pakistan border. Now the ground realities are that the Iranian Government did not lodge any complaint in the international tribunal for alleged violation of the agreement between Pakistan and Iran. Iran Government virtually favoured Pakistan by not raising the disputes in the international tribunal for arbitration. Iran knew well that Pakistan Government had no money to pay the hefty fine for defying the international agreement. Nor it is capable to build the pipeline at its own again for lack of resources.

At the beginning, the Punjab Chief Minister, Mian Shahbaz Sharif, objected to the Iran-Pakistan gas pipeline project and publicly termed it as “fraud”. The gas pipeline plan did not include Punjab and it was up to Nawabshah and was scheduled to extend gas facilities to two developed Indian states of Gujrat and Maharashtra where demand for energy is increasing with speed. However, the Indian Government had withdrawn from the trilateral agreement and it was left for Pakistan to implement it. The Indians feared US sanctions against the country if it promoted the Iranian energy projects, both oil and gas. It seems that there is change in the mind of the PML rulers and wanted to move ahead on the Iran Gas Pipeline Project for which the Minister for Petroleum and Natural Resources is expected to visit Tehran for comprehensive talks on various issues. Presumably, the Pakistan Government is more interested to renegotiate most parts of the agreement, mainly the gas prices. Pakistan wanted cheaper price of the Iranian gas for which Iranian Government may agree to talk. Iran may concede some of the demands and offer additional incentives to use and buy Iranian gas for the energy starved Pakistan. Iranians claim that they are doing all the favour to Pakistan in the interest of good neighbourly and brotherly relations.