Page 10 - The Indian EYE 040524

OPINION APRIL 05, 2024 | The Indian Eye 10

Impeded Progress on the

Iran-Pakistan Gas Pipeline

By 1999, India was invited to be a part of it, making it the Iran-Pakistan-India (IPI)

pipeline that was to extend up to New Delhi.

With barely any progress, India withdrew itself from this project in 2009

DR. SHRABANA BARUA

n 23 February 2024, the
Cabinet Committee on En-
Oergy (CCoE) of the Interim
Government of Pakistan approved
construction work on the Iran-Paki-
stan (IP) gas pipeline project. With
Shehbaz Sharif back to power as the
Prime Minister, the project has found
further impetus. On 25 March, as the
head of the CCoE, Sharif issued di-
rectives to immediately constitute an
inter-ministerial committee to expe-
diate the IP project. This comes after
a decade-long delay in the comple-
tion of the 2775-kilometre pipeline,
781-kilometre of the which lies within
Pakistan. While Iran has completed
its section of the pipeline, Pakistan
has been unable to start construc-
tion of the project despite repeated
commitment to it. These delays have
been attributed to ‘external pressure’
from the West. The United States
(US), United Nations (UN), Europe-
an Union (EU) and others-imposed
sanctions on Iran over its pursuit of
nuclear activities. The question then The delays in constructing the IP pipeline are also linked to financial assistance and loans that Pakistan has been receiving from those that
arises as to why Pakistan is going opposed Islamabad’s project with Tehran (File photo)
ahead with the construction of the
IP gas pipeline now, when such pres- it, making it the Iran-Pakistan-India million as loan to Islamabad for the did not finish on time but went a step
sures continue to exist? The timing of (IPI) pipeline that was to extend up pipeline, that was estimated to cost backward as Pakistan contemplated
Islamabad’s approval and the geopo- to New Delhi. With barely any prog- $1.5 billion for Pakistan at the time. shelving the project and Iran with-
litical complications surrounding the ress, India withdrew itself from this The total cost of the pipeline is $7 bil- drew the proposed loan to Pakistan.
project merit attention.
project in 2009. Iran had also hoped lion. Islamabad was aware that it had In 2019, Iran notified Pakistan of
A BACKGROUND ON THE IP China and Bangladesh would be as- to pay a penalty of one million dol- legal action if Islamabad abandoned
PIPELINE sociated with the project, but without lar per day, if it fails to complete the the project. After going back and
success. project on time. Due to a fear of pen- forth on the deal, and still unable to
he IP gas pipeline was first In 2010, both Iran and Pakistan alty, then President, Asif Ali Zardari, start the project, Pakistan issued a
agreed upon as early as 1995, signed an agreement at Ankara, to inaugurated the construction work of Force Majeure notice to Iran under
Twhen a preliminary agreement complete their respective sections of the pipeline with his Iranian counter- the Gas Sales and Purchase Agree-
was signed between the two coun- the pipeline by 2014. In 2011, Iran part in March 2013, and, then Prime ment (GSPA) in June 2023. Iran re-
tries. It is a project that is meant to announced that its section of the Minister Nawaz Sharif promised to futed this notice, but the GSPA was
transport gas from the South Paras pipeline was nearing completion. Pa- fulfil Pakistan’s commitment on the amended to allow Pakistan five more
gas field in Iran to Sindh (Gwadar kistan had not begun work on it, cit- same. years to construct the pipeline. Mean-
and Nawabshah) in Pakistan. By ing lack of funds as a reason for de- But despite these assurances, by while, the penalty that Pakistan had
1999, India was invited to be a part of lay. Tehran offered to provide $500 2014, the IP pipeline project not only Continued on next page... >>

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