Pipeline in stasis

Published September 29, 2023

DESPITE repeated assurances by successive governments that the scheme is still on the table, the Iran-Pakistan gas pipeline is going nowhere. The principal opposition to the project comes from foreign actors who do not wish to see the pipeline completed.

This troubling reality was again highlighted during a Senate committee meeting on Wednesday, during which officials told lawmakers that “commercial and foreign concerns” were standing in the way of the long-awaited completion of the project.

The foreign quarters referred to are the US and, to a lesser extent, Saudi Arabia, who have geopolitical qualms about Pakistan deepening economic ties with Iran. Where commercial concerns go — gas pricing, project financing, etc — these can be negotiated with Iran bilaterally.

However, dispelling the concerns our foreign friends have about the scheme is proving to be a complex proposition for Pakistan.

The confusion and lack of commitment surrounding the scheme does not present Pakistan in a very positive light where honouring international obligations is concerned.

The PDM government had assured the nation during its final days that efforts were being made to secure waivers for the project from the US to ward off potential sanctions.

Whenever the next elected government takes charge, they must handle this issue with clarity, keeping national interest above all else. There can be little disagreement that Pakistan needs cheap gas for its homes and industries.

Yet a fragile economy cannot afford debilitating sanctions. Therefore, a legally sound approach needs to be pursued on the diplomatic front to communicate to the US that Pakistan must honour its commitment to Iran. If finding dollars to fund the scheme is difficult, alternative currencies can be used, just as the yuan was used to buy Russian oil.

The fact is that in the future, geopolitical turbulence is likely to increase, and developing states, including Pakistan, will directly and indirectly be asked to take sides. The US, for example, also has issues with CPEC.

If, in the future, Washington asks us to abandon this and other Chinese-backed schemes, will we comply? With the pipeline, too, we can either continue to stall and risk messy international arbitration and get ready to pay billions in penalties, or we can keep our interests paramount, tell foreign critics that Pakistan needs cheap energy, and move forward with this and other schemes beneficial to the country.

Published in Dawn, September 29th, 2023

Opinion

Editorial

Unquiet Lebanon
Updated 21 Jun, 2026

Unquiet Lebanon

Either Israel must silence its guns and withdraw from all of Lebanon, or face isolation and boycott from the international community.
Mothers at risk
21 Jun, 2026

Mothers at risk

FOR years, efforts to reduce maternal deaths have focused heavily on postpartum haemorrhage — the severe bleeding...
Political budget
21 Jun, 2026

Political budget

THE KP budget does not read like a document of a province getting its fiscal house in order. Revenue is projected at...
Pakistan’s moment
Updated 20 Jun, 2026

Pakistan’s moment

Pakistan’s diplomats are second to none, and if these states seek to engage this country constructively, a new modus vivendi for the subcontinent can be reached.
Menacing water plans
20 Jun, 2026

Menacing water plans

IN April last year, India suspended the decades-old Indus Waters Treaty, which contains no provision allowing it to...
World Refugee Day
20 Jun, 2026

World Refugee Day

WORLD Refugee Day, observed today around the globe, marks 75 years since the adoption of the 1951 convention ...