Pak-Iran project: ‘Gas pipeline to bring industrial revolution’
Iran-Pakistan gas pipeline is bound to bring an industrial revolution in Pakistan, said Iranian Ambassador to Pakistan Mashallah Shakeri on Friday. He said this while speaking at the Lahore Chamber of Commerce and Industry, highlighting the advantages of the IP gas pipeline project, something that the US is opposing.
Majority industries in the country face three to four day gas outage a week, forcing many to shut down businesses as export orders can’t be met. Around 321 units have industrial units have been shut down alone in Balochistan and Khyber-Pakhtunkhwa during fiscal 2010. The country’s fertiliser industry is also facing an acute shortage of gas which is leading to increased imports of Urea. This has as two-fold impact on the economy. It is costing the government billions in the form of subsidy, and is also negatively impacting the agriculture sector which is the backbone of the economy.
The Iranian ambassador said that adequate supply of gas could be the catalyst for kick-starting economic growth in Pakistan.
The government is already bearing Rs43 billion as the cost of subsidy on imported urea and this is expected to go up to Rs125 billion over the next two years of local gas supply is not enhanced or an alternate is not found.
The Iranian ambassador said that the amount of gas to be supplied to Pakistan through the pipeline will be enough to meet the country’s demand.
The government will also save on imports of furnace oil which is currently being used in increased quantities to fuel power generation because of the shortage of gas.
The Iranian ambassador while speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Friday said that the Pakistan-Iran gas pipeline will promote people-to-people contact, tourism and economy of both nations.
Talking about Pak-Iran trade relations, the ambassador said that Pakistani businessmen should avail Iranian expertise for enhancing economic cooperation amongst the two business communities. The ambassador said that exchange of business delegations could pave way for exploring areas of common interest. Iran would provide technical and all other kinds of assistance to Pakistan to overcome energy crisis, he added.
LCCI President Irfan Qaiser Sheikh gave a number of proposals as to how both the two countries could enhance their bilateral trade and the volume of two-way business.
Shakeri expressed hope that industrial exchange programme would help promote trade relations. Speaking on the occasion, the LCCI President while congratulating the Iranian ambassador for taking Pakistan-Iran relations to new heights, said that the business communities of both countries have yet to realize their full potential. Both the countries have large domestic markets and unique geo-strategic competitive advantage.
Published in The Express Tribune, October 15th, 2011.
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unrealistic and Fake energy crises in pakistan was indicating that such huge project of iran , pakistan pipe line is to be enforced by the hook or by the crook to keep busy the forgin forces of u.n/Amarica in iran and pakistan. Because pakistan has every resource of producing power/energy and don't need to buy energy from out side but needs to utilize its own resources. on one hand we can produce wind , solar and coal energy in pakistan where as on the other hand we do have oil fields and gas reserves in very wast quantity too. But fact of the matter is libya , iraq , saudi and afghan and many other islamic oil fields have been captured by amarica in which eu , nato countries are trying to over come there crises or entertaining there ruthless agenda and its seems that iran and pakistan are suffering though but still are in waiting list of the heros of ground zero.
Iran is a shia country. Once Pakistan go into the arms of Iran, then we will loose half of our sovereignty because Iran can blackmail Pakistan by way of cutting gas supply. We cannot promise present and future industries guaranteed supply of gas. Moreover who will finance this much money for pipeline and what about its security when our armed forces dare to go some places in North East or North West of our country.
So when Hillary is coming to stop this?
MarkH
Thing is Iran is under sanctions and it si desperate to get new customers.
@antanu: Honestly, with the time I've grown up within the mess and how it has effected me, I have little personal against Iran. I see it from a very detached view. The only Iranian that has a habit of rubbing me the wrong way is the president and that's because most of his accusations come out of nowhere but imply a whole lot of negative things that make little sense and that has come from my own judgment, not the US government's. In fact, politics do not make up much of my conversation with people aside from when the medium used is almost dedicated to them such as sites like this. I am most likely to roll my eyes at hardcore politicians trying to to push their views off on me and lose respect for them almost automatically. But, they can't always be wrong, either. I'll give them credit if I find it due, and that will be based from my own person values.
Iran is under tight squeeze for foreign exchange. 20% of iranian oil import by Indian oil companies is paid in Indian rupees and Iran has a rupee account for its oil.
With the recent allegations of assassination attempts against Iran, Iran will undergo strict trade sanctions and scrutiny. And PAK has to wait for a while for Industrial revolution if she depends on this pipe line.
The US-Iran relationship is at the lowest level now. Not sure when and who will mediate the feud. I have a gut feeling that it will be Indians. It is likely that Indians will propose IAEA inspections with Iran, and if Iran goes along with that suggestion then the pipe line may be a concession in exchange.
@MarkH: Well if are US citizen....then it is understandable. US bias against Iran is well known..
As a Stu of Petroleum and Gas Engg 1. I don’t know why Pakistani Politicians, policy makers and think tanks paying highly cost for the gas pipe line, rather than new Exploration, Drilling and their production, which is cheaper. 2. This Pipe line need Security, how that will be served from the bad people. 3. American and Saudis will never allowed, they have their own policies regarding Iran, Almost Pakistan include in that policy, 4. Industrial Revolution (hahahaha) will never faces toward Pakistan unless we need to change our Politician, Bureaucrats, think tanks, our economic system, our Policies, our security system, our strategies and most importantly our people thinks and their minds. then there will be away, 5. In last the words of Gen Museraf “Pakistan ka khuda Hafiz”
@Aamir Chaudhry Agreed but availability is more important at the moment.
I don't care whether the pipeline deal happens or not. But, they're pushing the idea suspiciously hard, almost desperately. They're also being oddly accommodating bordering on going overboard. It's just out of character for Iran. There's got to be some unspoken motives. That doesn't mean they're negative ones. But, something is missing and it's not about me being from the US. Whenever I have commented on this topic I have always treated it as Pakistan's own business and it not being my place to say it should be one way or another as I'm not the one being effected by the issue. There's just a really weird feel to it that hasn't been present in the other articles.
I wonder how it will bring savings as the price is bench marked against international oil prices. Almost simmilar price for oil and gas which means much higher price than our current going prices
I agree it will bring industrial revolution -----we should expedite the Pak -Iran pipeline project .And try to complete is as soon as possible .