‘Govt delaying IP project to please US’

Project to reduce gas deficit by 30%: Pakistan Economy Watch.

ISLAMABAD:


The government has been purposely delaying import of gas from Iran to please the US which is damaging the country’s economy, says Pakistan Economy Watch (PEW) president Dr Murtaza Mughal on Tuesday.


Pleasing US at the cost of the country suggests that the government is dominated by incompetent and apathetic officials, it said.

The country’s largest bank National Bank of Pakistan and the country’s largest exploration company Oil and Gas Development Company Limited last week backed out from the Iran-Pakistan (IP) gas pipeline on fears of possible sanctions by the US.

Pakistan cannot secure its future without Iranian gas, said Mughal.

Controversial measures like banning CNG kits in new and old cars and cutting supply to CNG stations for months in a country with the world’s highest consumption make no sense, he added.

Dr Murtaza Mughal said that Iran has brought the pipeline to the border and now Islamabad should immediately start building the remaining portion of the pipeline.


Decades have already been wasted in discussions and modifications, further wastage of time will jack up costs and leave the industry uncompetitive in the international market, he warned.

Iran produces 5.5 trillion cubic feet of gas per year, it will sell 740 million cubic feet of gas per year which will address around 30% of our gas deficit, he said.

Mughal said that rulers seems unconcerned about over two per cent yearly fall in the GDP, over 25,000 crumbling industrial enterprises and untold miseries to the masses.

He observed that the performance of local exploration sector remained dismal despite knowing that our gas fields will be exhausted by 2025.

Interests of the foreign companies that continue to work in the restive regions prove that the business is still profitable for foreigner investors, he said.

American will continue to oppose gas pipeline and do nothing to resolve the chronic shortages except offering economically unviable alternatives, Dr Mughal noted.

Despite sanctions, Iran is India’s second major source of crude, it could be Pakistan’s major source of gas, he opined.

He asked India to take bold decision of joining the project after getting MFN status as it cannot ignore its nearest gas reserves for long.

Published in The Express Tribune, December 28th, 2011.
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