KARACHI:
It is no exaggeration to call the energy crisis in Pakistan the mother of all crises. I have reiterated the worsening impact of the crisis on all factions of society in previous articles, as ignoring this elephant in the room is no longer something we as a nation can afford. At the heart of this crisis is the rapid depletion of the country’s energy resources, coupled with an apparent lack of further exploration and development. Pakistan’s heavy reliance on finite energy resources, mainly natural gas and oil, has created a precarious imbalance between supply and demand.
It is indeed an unfortunate situation for a country neighboring Iran, which holds the second largest natural gas reserves in the world, amounting to 33 trillion cubic meters, second only to Russia. However, to harness this resource, we need a balance of courage and determination on the political side and finesse on the foreign policy front. Unfortunately, the leadership of the Pakistan Democratic Movement (PDM) threw in the towel right from the start during his tenure in PDM 1.0 when Prime Minister Shehbaz Sharif declared that “Beggars cannot be choosers!”. This resignation to fate meant that we gave up on this issue before we even tried, as US Assistant Secretary of State for South and Central Asia Donal Lu pointed out in a recent congressional hearing. He informed the committee members that Pakistan did not even approach the US for a waiver to build the pipeline with Iran.
Alternatively, we have been given another pipeline option in the past – the Turkmenistan-Afghanistan-Pakistan-India (TAPI) – originating in Turkmenistan, which is even more complicated geopolitically as most of this pipeline will pass through Afghanistan. the region quickly becomes the most volatile and hostile. In addition, the TAPI pipeline crosses difficult terrain, including mountainous and potentially seismic regions, which could create technical and logistical challenges during construction and operation. These challenges could lead to delays and cost overruns, further complicating the viability of the project.
The Iran-Pakistan natural gas pipeline project offers several long-term benefits to Pakistan that could significantly impact its economy, energy security and regional relations. First, the pipeline can provide a stable and reliable source of natural gas, helping to meet the country’s growing energy needs. This would reduce the country’s reliance on more volatile and less efficient imported fuels such as coal, oil and liquefied natural gas (LNG), and help stabilize energy prices, benefiting both consumers and industries .
Reading Pakistan to seek US waiver on Iran gas pipeline project
Second, the pipeline project could improve Pakistan’s economic ties with Iran, leading to increased trade and investment opportunities. The project can act as an important confidence-building step, especially in the context of a recent unfortunate flare-up in the security situation in the region bordering the two countries. The project could also pave the way for further regional cooperation, potentially opening up new markets for Pakistani goods and services.
In addition, it holds the promise of enhancing Pakistan’s energy security by diversifying its energy sources. This would reduce the country’s vulnerability to supply disruptions and geopolitical pressures, enhancing its overall energy resilience.
Overall, the Iran-Pakistan natural gas pipeline project has the potential to contribute significantly to Pakistan’s economic development, energy security and regional cooperation, making it a critical component of the country’s long-term energy strategy. However, so far, the government’s response to such a critical infrastructure project, aimed at securing future energy supply, remains highly ambiguous and contradictory.
On the one hand, our State Department spokesperson recently told Voice of America (VoA) that we do not need a waiver from the US to build a pipeline within our territory, on the other hand, we have not yet done anything to build it. section of 80 km. pipeline, as agreed by the interim government. This inaction took place despite a September 2024 deadline that could help avoid $18 billion in fines and penalties. Specifically, in a recent statement by Oil Minister Musadiq Malik, it appears that finally, the government has decided to approach the US government for the much-needed resignation.
Moreover, US President Joe Biden’s recent letter to Prime Minister Shehbaz Sharif after years of silence gives some hope for a possible softening of Washington’s stance on Pakistan. This certainly opens a window of opportunity for the waiver to pass the House by comprehensively presenting the case for the project through effective lobbying.
THE AUTHOR IS A BUYER OF THE FINANCIAL MARKET AND IS FIXED WITH PAKISTAN STOCKS, COMMODITIES AND TECHNOLOGY DEVELOPMENT
Published in The Express Tribune, April 8u2024.
Like Businesses on Facebook, follow @TribuneBiz on Twitter to stay updated and join the conversation.
a href=”https://tribune.com.pk/story/2462022/iran-pakistan-pipeline-a-much-needed-lifeline”>Source link
