The Industrial and Commercial Bank of China, which was appointed financial advisor to arrange the financing for the Iran-Pakistan gas pipeline project has decided to back off. This is a message for Pakistan that countries’ friendships are based on economic interest.
Every country looks after its own interests and China is not prepared to affects its economic interests with the USA for Pakistan’s interests.
Unfortunately, our policymakers and those at the helm of running the country are not able to make the country economically independent. Every country’s friendship with other country is purely based on economic interests. As US threatened to impose sanction on any banks that will provide funding for the IP gas project, the China Bank caved in.
Now what are other alternatives available to the government to implement this project, which is already delayed by 10 years and is vital to the Pakistan’s energy needs. The government should consider:
1. Transfer the project to private sector to such an organisation as Fuji Foundation, Nishat Group, Engro Corporation, Dawood Group and other industrial groups which own and operate multibillions dollar projects.
2. The government should form a public-private partnership company to own and build this project.
3. The government should revive barter trade agreement with Russia and award the contract on build, own, operate and transfer basis with a time limit of 20 years. There are number of Russian companies who have technical know-how to execute this project.
After all, it was the Soviet Union which helped Pakistan to establish Oil and Gas Development Corporation and established Pakistan Steel Mill, which was also opposed by the then US Administration.
4. The government should approach the expatriate Pakistanis to buy the shares of this project and appoint a project head whom the Pakistanis trust for fund collection and spending honestly for the project.
If Imran Khan and Abdul Sittar Edhi can collect billions of rupees every year for their welfare and charity projects, why cannot the people be convinced to invest in the commercial projects which can pay good dividend to shareholders?
Unfortunately, the creditability of government is so low that even the friends of Pakistan are reluctant to help it.
S T HUSSAIN
Lahore
How about this –
SCRAP THE PROJECT
The IPI pipeline was supposed to be a project to supply gas to India and Pakistan collect royalties.
WE DONT NEED TO IMPORT GAS – WE HAVE ENOUGH TO LAST US FOR YEARS IF WE PAY LOCAL PRODUCERS –
IPI GAS IS $11 – LOCAL is $4 – DO THE MATH
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