In today’s episode of Tribune Take, we look at the Iran-Pakistan gas pipeline project and how much Pakistan needs it.
Khurram Baig, Business Editor of The Express Tribune, says Pakistan needs new sources of gas supply because its own reserves are getting shorter day by day and if this project doesn't materialise very soon, the country will run into problems.
Speaking about the delays, he says that Iran has already constructed its portion of the pipeline; however Pakistan has not even started working on it. Furthermore, Pakistan now demands to get the Iranian gas fields re-certified by a third party to confirm Iran’s claims about the fields. The negotiation due to this was holding up the project.
About Pakistan’s insistence on cheaper rates, Baig suggests that Pakistan should get on with the project despite reservations and negotiate pricing as the process goes along. More so because a clause in the agreement states that Pakistan can ask for cheaper rates if it is getting gas for lesser price from somewhere else.
Read Khurram Baig’s articles here.
The Tribune Take daily news web show will appear on the tribune.com.pk home page.
The Take will feature in-depth interviews and analysis with editors and reporters who are covering the major stories, exploring front page events and major ledes. The news analysis covers the way The Express Tribune examines a story, how we cover it and why.
COMMENTS (12)
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Pakistan can make all kinds of noises , wanting to show Iran they are for pipeline , trade etc,, but fact remains Pakistan cannot take any such decisive step without a nod from USA. Presently Pakistan is not in position to take independent step..else Generals , Junta wud lose all aid, big bucks to keep their guns , cars, havelis well oiled!!
@Love Pak:
Then build it if this is in the best interest of PAK.
Finally something free of left, right or international bias. We need more of this!
Pakistan needs the gas and Iran's gas is the closest and most likely cheapest. It's basically a no brain-er. Why is this turning into a bad TV soap opera with villain ( your guess ) and all ??
This pipeline project will never materialize if we have to care about relations with Arabs and West. All efforts are useless like the efforts made for power import..
This project was a non starter, with US Sanctions in place and Pakistan inability to raise the funding ! The Iranians really would have liked this deal as it would have relieved some pressure on their earnings, which will get harder with sanctions and Pakistan is desperate for the energy resource too. Both these Countries have serious attitude and complex problems with rest of Global Community, hence their basic inability to finance or act independently in rehards to anything, especially Pakistan, as they have basically survived on handouts and aid for too long !
Its not going to happen, not with the US sanctions and all. High time we canned this useless deliberation. The US pays our bills and we are in no position to negotiate. The IP pipeline was a trump card that we were holding, just like the NATO supply lines, that the administration pulls out to pressure the US. With the sanctions by the West in place, our bluff has been called. The govt, as always, is dragging its feet because it KNOWS it cant go ahead without the support of international counterparties (banks, financiers, technical consultants, etc). We have just one consultant report that was made before the latest sanctions were in place, which states that it does not violate the sanctions. But the world has pre-empted our move and as usual, we are asleep at the wheel.
Iran must put a deadline for Pakistan and then claim whatever it has spent on building their part of the pipeline. Let Pakistan keep playing in the hands of US and Arabs - the poor Pakistanis one day will realize who they should blame for their miseries.
I must say i totally agree with everything he said.
Good Analysis
Brilliant Journalist! Quite impressive.
AOA:
This is the first person i like on media.nice and independent speaking.