A very crucial project

Letter March 09, 2013
News of implementation of the Iran-Pakistan gas pipeline project truly comes as a breath of fresh air.

ISLAMABAD: Pakistan is passing through one of the worst energy crises in its history. No serious effort has so far been made to address this critical issue by those responsible, that is, till now. In such a situation, news of implementation of the Iran-Pakistan gas pipeline project truly comes as a breath of fresh air.

If it is able to see the light of day, the project will significantly help in reducing the massive gas shortage which Pakistan faces today. It would perhaps, also help in rejuvenating the country’s industries which have almost come to a halt due to inadequate gas supply and revive industrial production. This undoubtedly will give the moribund economy the kickstart that it direly needs. A question that however arises is will this project ever kick off. At least when looked at from the recent very bold standpoint of the incumbent government of Pakistan, it seems it will. That the Government of Pakistan has finally signed an agreement with the Iranian government on this matter reflects the seriousness of the two countries to go ahead and implement this extremely vital project without further delay.

As reported, under the deal between the national Iranian oil company and Pakistan’s interstate gas system, Tehran will provide 750 million cubic feet of natural gas every day, for 25 years, from its giant offshore South Pars field in the Persian Gulf. The total cost of laying down the Pakistani section of the pipeline is $1.5 billion. Iran has already completed the construction of its section and is providing funding of $500 million for the construction of the Pakistani section.

As for America, its State Department has categorically said that it is in Pakistan’s interest to avoid any activity that could hit it with sanctions. The State Department said that it was providing Pakistan with alternatives that would avoid any violation of sanctions. President Asif Ali Zardari has categorically said that no power in the world can halt the $7.5 billion project, dismissing mounting US opposition to the venture that will be formally inaugurated on March 11. When asked about US opposition to the project, he said Pakistan can make decisions independently and sign an agreement with any country to tackle its energy crisis. A very bold stance indeed, Mr President!

M Fazal Elahi

Published in The Express Tribune, March 10th, 2013.