Future of Iran-Pakistan gas-pipeline project

Over the last couple of days, conflicting reports have been emerged regarding Chinese interest in the Iran-Pakistan gas pipeline project.

Citing geological reasons, the media reported that Industrial and Commercial Bank of China may quit the financing consortium.

A delusion into believing that China is an all-weather friend, which will stand by us no matter what will happen, is not true at all. Like all coalitions, the alliance between the two countries is based on handiness and self-concern approaches.

In many areas, there are now increasing omens that these interests are now departing. Over US pressure, the Industrial and Commercial Bank of China, which had previously committed to financing the Iran-Pakistan gas pipeline, has now decided to pull out.

This is happened most likely because China has another alliance with the US, which took superiority over the association with Pakistan.

America has already threatened to impose sanctions to any company that deals with Iran and apparently, China has given way. The efforts of the US, which worked overtime to ensure that the Iran-Pakistan gas pipeline project does not become reality, do not seem to have been unsuccessful.

Pakistan, luckily, have alternatives to complete the project. A consortium comprising local and foreign firms can be a possible alternative to finance the project, which was the second-lowest bidder for the contract.

This option will end up costing the government more but the project is so significant to Pakistan’s energy needs that the extra cost can be ignored.

Among the other available options, we can deal directly with friendly governments or even coming to a barter agreement with Iran where we would exchange wheat in return for manufacture help for the project.

Reportedly a gas levy is being mulled but that option may not be palatable to the masses, as gas prices have been increased recently.

As a nation, we should be ready for a time when our alliance with China, the longstanding friend, is seriously diluted by increasing ties between New Delhi and Beijing.

Trade between the two neighboring states has been upped nearly $50 billion yearly and only anticipated to enhance substantially in the future.

Pakistan should formulate a strategy, as relying on only one ally is never a good idea, and in the case of China, it is becoming progressively more challenging.

Short URL: https://www.newspakistan.pk/?p=15869

Posted by Faisal Farooq on Mar 15 2012. Filed under Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.