The proposed $1.35-billion Pakistan Iran gas pipeline project has been passing through various ups and down for the last many years due to internal expediencies and foreign pressures on both the neighbouring countries. Originally, India was also part of the project but backed down from it owing to its inherent opposition to Pakistan. According to news reports, Pakistan wants to revise the gas prices and also seeks to extend the schedule for the implementation of the project. However, Iran is blaming Islamabad for the delay of the project as the government is unprepared to work out a formula for fresh pricing and the Ministry of Petroleum and Natural Resources is still awaiting the official node to start negotiations with its Iranian counterpart. The project has already been delayed after sanctions were imposed on Iran. However, the sanctions have been phasing out for a couple of years but no progress is made on the project. The Petroleum Ministry is awaiting the approval for the last five months to negotiate fresh pricing and draft amendment with Tehran.
Under the original agreement between the two countries, the project should have been completed by December 31, 2014 and gas flows should have been started next month, from January 1, 2015. However, the now Pakistan wants to extend the deadline. Due to inordinate delay in the execution of the project, a need arose to revise the gas prices keeping in view the trends in the international market. However, delay in negotiations means there are bleak chances in near future to kick start the project. It is the dilemma of this country that none of the projects completed in time. The delays not only increase the cost of the projects, but also inordinate losses if projects are suspended for an indefinite time. In the current situation, both Pakistani and Iranian officials agree to extend the date for the completion of the project and revise its prices, but even negotiations could not start between the two for one reason or the other.
According to Iran, the pipeline segment on its side will be completed in one-and-a-half years but Pakistan is still unclear how it will take to complete the project. The federal cabinet of the time approved the Iran-Pakistan GSPA in 2009, but no progress had been made since then despite the lapse of seven years. It appears the officials should be put to work under strict surveillance to get the desired results. Any delay of days are extended to the delays of years and this routine needs to be rid of once for all.
