ISLAMABAD: United International Group Chairman Mian Shahid has said that Iran-Pakistan gas pipeline is very important for the economy of Pakistan.
The UIG chairman, while talking to Islamabad Women Chamber of Commerce and Industry (IWCCI) Samina Fazil, said that the project has important political and economic dimensions for the two neighbouring countries but US has remained the biggest obstacle forcing Pakistan to get gas from Turkmenistan, he added.
He said that the pipeline project, if materialised, could be extended to India and China providing extra income to Pakistan under transit head while Iran could also provide LNG at economical rates.
The development will add to Iran’s influence in Pakistan and revive its sick energy sector hit by decades of sanctions. Mian Shahid said that economic and political repercussions of the pipeline are widely debated as it will cover the gas shortfall in Pakistan which Iran will find new markets to the east to expand and diversifying energy export revenues.
Iran has already raised its oil prices by 9 percent and set an output target of 5.7 MMBOPD of crude oil by 2018 which indicates its confidence while India is jacking up its LNG imports from 20 million tonnes to 25 million tonnes in three years for which a floating terminal has been planned in Mumbai costing $470 million.
Samina Fazil lauded the role of Pakistan of not taking sides in the Yemen conflict which has been lauded by some friendly countries. She said that Pakistan should contact foreign investors and allocate funds for the project in the upcoming budget as there is high probability of removal of sanctions next month.
