Resurrection of IP gas pipeline project
The chances of resurrecting the Pak-Iran gas pipeline project, which has remained in doldrums ever since it was conceived in 1995 — due to a variety of reasons including financial constraints and the unrelenting US pressure on Pakistan to dissuade itself from the venture — have surely brightened up after a meeting between Pakistan’s minister for Petroleum and Natural Resources Shahid Khaqan Abbassi and his Iranian counterpart Mr Bijan Namdar Zangeneh in Tehran on Monday, 9th December, wherein both sides expressed their resolve to move forward on the project. It was also agreed to hold another meeting shortly to review parameters for accelerating the implementation of the project and other issues related to it. It is indeed a very encouraging development in the backdrop of some discouraging signals in the recent past about the project ever taking off. The PML-N government certainly deserves credit for not succumbing to the US pressure and remaining steadfast in fulfilling the commitment made with the Iranians, in our best national interests.
It is pertinent to mention that the US has been trying to persuade the PML-N government to withdraw from the project by promising help in the energy sector as an alternate to the venture and also supporting the trans-regional projects like CASA-1000 and TAPI. It even used threats of sanctions against Pakistan but the government exhibited rare guts and vision to spurn the combination of lures and threats by the sole superpower in the world. The PML-N government by sticking to the project has also made a healthy break from the unenviable past practice by the new governments to discard and disown the projects initiated by the previous regimes. The stance of the government is also in line with the vision and paradigm shift in the conduct of our foreign policy orchestrated by the present government with greater focus on building regional linkages.
Pakistan belongs to the South Asian region and its economic prosperity and security is inextricably linked to this region. Any policy divorced from these realities would not be in our long term national interests. Giving due consideration to the geographical realities and historic bonds with the countries of the region, as being advocated by Prime Minister Nawaz Sharif, is a pragmatic and realistic thinking. The P5+1 agreement with Iran on nuclear programme of the latter has also contributed to creating a congenial atmosphere for the implementation of the project and both Pakistan and Iran must capitalise on this development to fast-track its implementation.
The only trans-regional project relevant to Pakistan’s situation at the moment is the Iran-Pakistan gas pipeline (IP).The Pak-Iran gas pipeline is not only important for energy-starved Pakistan but also for Iran in terms of showing the world that it is not isolated, more so in its own region. The groundbreaking ceremony of the Pakistani section of the pipeline on 11th of March early this year, despite US threats of possible sanctions against Pakistan not only promised a perennial lifeline for Pakistan but also provided much required props to Iran to reinforce that notion.
The Pak-Iran gas pipeline is almost indispensable in view of the energy crisis gripping the country at the moment and its future needs. The completion of the project would be instrumental to the addition of 4,000 MW of electricity into the system. The Pak-Iran gas pipeline will serve our economic interests for a long time to come besides other benefits that will come through economic integration with the region. It is hoped that in view of the importance of the pipeline for both the countries and their determination to make it a reality, issues such as pricing and availability of the finances for construction of the 781 km section of the pipeline on the Pakistani side would be amicably resolved.
India, which initially was also part of the project known as IPI, withdrew from the venture in view of the US opposition to it. However, it has been adequately compensated through the signing of the agreement for transfer of civilian nuclear technology to her from the US and its allies like UK and France as well as US’ commitment to install power projects with a cumulative power generating capacity of 40,000 MW of electricity. The US is not prepared to treat Pakistan at par with India in regards to transfer of civilian nuclear technology. Pakistan perforce has to find other avenues and sources for generating power to meet its current and future needs.
China, our time-tested friend, has come to our rescue in this area. It is helping us in building Chashma III and IV and is also engaged in the construction of nine power units in Gilgit-Baltistan and Azad Kashmir, including the Neelum-Jhelum Project. As agreed during Prime Nawaz Shrif’s visit to China, the Chinese companies would be making an investment of US$ 6 billion in the power projects in Pakistan over the next five years, especially in the coal based electricity generating units in which China has exceptional expertise.
Prime Minister Nawaz Sharif recently also performed ground breaking ceremony of a nuclear power plant at Karachi with a potential to generate 2,200 MW, with the Chinese help. At present Pakistan has an installed power generating capacity of nearly 23,000 MW from all sources and according to an IAEA assessment report power demand in Pakistan will increase to more than 49,000 MW by the year 2025. The PML-N government therefore is moving in the right direction by giving top priority to tackling the energy crisis and adding new power generating capacity to the system. IP is surely a project of immense value in regards to attaining energy-security and kick-starting the process of rehabilitation of the febrile economy, as envisaged by the government.
Malik Muhammad Ashraf is an academic. He can be contacted at: [email protected].
