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Home Op-Ed Editorial

Future of Pak-Iran gas pipeline

byDr. Aftab Afzal
07/02/2018
in Editorial, Latest News, Op-Ed
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The future of Pak-Iran gas pipeline is in doldrums, but the onus of failure is more on Pakistan than Iran. The people sitting at the helm of affairs in Islamabad are either incapable of protecting the national interest or they are too obsessed to consider anything without the nod of their foreign masters. The project was conceived in 1952, but Pakistan and Iran reached an agreement in 2008 to build the pipeline. Now 10 years later, the progress on the project has virtually stopped. During the previous years, Iran built its portion of the pipeline, but the Pakistani authorities were too confused to go ahead with the plan. The question is how long Iran will wait for the Pakistani response as the project is already behind the schedule. Tehran is now getting restive as Pakistan is apparently reluctant to even talks on the issues causing inordinate delays in the execution of the project. The cost of the project has already increased manifold and the prices on which the agreement was signed are also subject to change with the current market rate. Millions of millions dollars have been spent on the blue print of the project and under various heads, but authorities have no clear-cut policy or stand on the subject.

The gas pipeline is crucial for the future of the industry in Pakistan. Earlier, India was also part of the project but it withdrew from it at the eleventh hour. The energy demands of the country are growing due to expansion of its industry and proposed industrial zones along the China Pakistan Economic Corridor. Initially, 2014 was the year to complete the project but the deadline was extended up to early 2017 as Islamabad wanted to revise the gas sale and purchase agreement. However, the work on the project went on in piecemeal fashion due to international sanctions on Iran and Pakistan’s inability to ensure availability of funds to construct its side of the pipeline. Though sanctions were lifted long ago, the project has been left in limbo. An Iranian official has warned that his country has the option to initiate legal proceeding against Islamabad for failing to fulfill its obligations. It is now Islamabad’s turn to come clear on the project. The United States is vehemently opposing the project for its own reasons, but China can be involved in the plan to fend off the pressure.

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