What is to follow
Iran-US nuclear deal will promote peace in the region and the withdrawal of economic sanctions against Iran will help Pakistan to get international funding for the construction of Iran-Pakistan gas pipeline because the country is keen to get Iranian gas.
Better prospects
PPP’s Senator Sherry Rehman welcomed the nuclear agreement between the P5 plus 1 and Iran in Vienna as a landmark deal. She hoped the lifting of sanctions would spur the federal government to move forward on the Iran-Pakistan gas pipeline development, which had been left undone since 2013 when President Zardari pushed it through with Tehran.
“We urge Islamabad to lose no time in moving ahead with Pakistan’s side of the pipeline, as its completion should bring urgently needed relief on the energy deficit at home”, she said. The pipeline promises, according to some estimates, to deliver 21.5 million cubic metres of much-needed gas to Pakistan, where reserves are drying up fast and demand rising exponentially.
“We also hope that the lifting of sanctions gives the Iranian people much-awaited relief that global connectivity could give their economy. The regional pivot which the PPP government had premised foreign policy on can also now be truly realised, with Pakistan becoming a hub for energy and trade for the entire region,” she added.
Development of the Gwadar Port infrastructure, which will further connect Pakistan to the China Economic Corridor, as conceived by the PPP government, will bring a new development dividend to Pakistan if realised in time and with real transparency.
Development of the Gwadar Port infrastructure, which will further connect Pakistan to the China Economic Corridor, as conceived by the PPP government, will bring a new development dividend to Pakistan if realised in time and with real transparency
She added that the Iran deal can actually boost bilateral trade with Pakistan as well now, and Islamabad can look to achieving higher trade goals than the two billion dollar mark that both countries had reached before sanctions brought it down to 300 million dollars.
“Iran is an important country that we share a border with, and leveraging resources together will be key to fighting terrorism in the region as well. The lifting of sanctions should incentivise Tehran to mainstream its efforts and join other countries in stabilising the region, especially with higher cooperation between Kabul and Islamabad,” Rehman said.
Talking to DNA, leading Economist Professor Dr Qais Aslam said Iran meets with a common border with Pakistan, which is the modern entity of the ancient Gandhara and Indus Valley Civilisations. This common border is shared by common people of the Baloch tribes residing in Pakistan’s Balochistan and Iran’s Baluchestan -Sistan provinces, therefore these two countries share common cultures, common heritages and common traditions which are the basis of strong brotherly relations between the people of Iran and Pakistan.
Also these nations share a common religion – Islam, although professing two distinctly different shades of Islam – Shi’a and Sunni. So far, Pakistan’s economic relationship with Iran has been weak, to put it mildly.
Dr Aslam added that Iran was an energy rich country with highly motivated, educated and skilled workforce. Also women participation in economic activity is almost 100 percent.
“After the Iranian Islamic Revolution, Iran fought a devastating 13 year war with its neighbour Iraq, which killed more than three million young men in that country and now for the last 40 years there was a crippling economic embargo on its energy sector by UNO, USA, EU, etc, which broke most of its economic linkages with the rest of the world, including Pakistan,” said Dr Aslam, adding that even then the capability of this nation to produce quality products at home and to take up quality research in scientific fields in creatable. Iran remains an important market for Pakistani products if these relations become warmer.
Pakistan – 6th largest by population, housing one of the youngest population in the world and 34th largest by territory — is a regional nuclear power strategically placed between India, China, Afghanistan and Iran. Abundant in mineral, water and agricultural resources, Pakistan has the capacity to export a variety of value added goods.
Now that Iran and the five permanent members of UNO (USA, Russia, China, France and UK) plus Germany (5 + 1) have signed a historic deal with Iran on curtailing its nuclear program, by December 2015 US Congress would have rectified (hopefully) this agreement and therefore Iran in 2016 will once again emerge as an equal member of the international community, free to buy and sell in international markets, said Dr Aslam.
Pakistan and Iran have a gas pipeline deal which needs to be expedited, especially the laying of pipeline on Pakistan’s side so much-needed gas for its energy starved economy would commence. Iran is also a member of OPEC and a major supplier of Crude Oils and petroleum products. Pakistan is an oil importing country which would gain from reducing transport costs if it imports its oil and petroleum products directly from Iran. Pakistani students can learn from Iranian research at Iranian universities at reduced costs. On the other hand Pakistan can get access to the Iranian market for its horticulture, halal food and meat products, its light engendering products, its mineral resources, its textiles, leather goods, sports goods and surgical goods as well as market for its human resource.
Pakistan and Iran have a gas pipeline deal which needs to be expedited, especially the laying of pipeline on Pakistan’s side so much-needed gas for its energy starved economy would commence
Dr Aslam opined that the opening of Iranian markets would be a win-win situation for people Pakistani and Iran, the entrepreneurs of the two countries as well as for cultural and religious exchanges. It would also boost regional peace and cooperation in many new avenues.
Combined with Pakistan-China Economic Corridor which runs in the same geographical vicinity of Iran and Afghanistan; membership of Pakistan in Shanghai Club (SEO) which is an extension of BRICS and now opening up of market opportunities in Iran, — Pakistan has ample opportunities to put its house in order, to make better and effective management of its economic, financial, water and energy resources.
Acclaimed political analyst Dr Hasan Askari Rizvi said that Pakistan would like to see Iran back in active international interaction adding that the most important outcome of the international deal is that it defused the tensions between Iran and US.
“Now Iran could surely build strong economic ties with Europe and North America and can become an active player in the region. The deal will promote peace in the region,” said Dr Rizvi.
Arabs are not left with much choices because US is party to the deal with Iran which had ensured the Arab estates that Iran will not make nuclear weapons, however, the Arabs continue to distrust Iran and now worry that with the withdrawal of sanctions Iran’s economy will boom, said Dr Rizvi adding, “So Arabs have their own concerns which regard to their relations with Iran,” he noted.
Nuclear deal with six super powers of the world with Iran is great break for opening of trade and geo-political stability in the region . It is also a ray of hope for Pakistan to complete gas pipeline with the assistance of any country financial help after lifting of sanctions by USA. We can increase our trade for food items with Iran and Pak China trade corridor will also be helpful for development of oil fields infrastructure and roads and cheap consumers goods and utensil . Arabs and certain setarian group may have reservations for developing relations with Iran .But after deal the scenero has been changed and after release frozen oil payments amounting to 100 billion dollars by banks will make ecnomically strong and purchase powe of common people will increase and demand of household goods will boost up . Pakistan should streamline internal affairs and clean mess of sectarian religious extremism for which our Army is playing vital role .
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