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OPINION APRIL 05, 2024 | The Indian Eye 12

to pay Iran accumulated to $18 bil-
lion by 2023, which was notified to Pa-
kistan’s Publics Account Committee.
With the IP gas pipeline be-
ing touted as a pertinent project
equipped to lessen the burden of a
deepening energy crisis in Pakistan,
the CCoE approved the first phase
of the pipeline’s construction on 23
February this year. The 80-kilometre
stretch is to be financed by the Gas
Infrastructure Development Cess
(GIDC) and executed by Pakistan’s
Interstate Gas Systems (Private)
Limited (ISGS).
THE GEOPOLITICS BEHIND
THE DELAYS
he delays in the IP pipeline
are attributed to sanctions im-
Tposed on Iran. The United Na-
tions Security Council had imposed
various sanctions on Iran through
six resolutions over the years, which
were all lifted by October 2023. Ad- Iran and Pakistan had a rough start to the year. Iran launched missile attacks on the militant group, Jaish al-Adl, in Pakistan’s Balochistan
ditionally, the US sanctions on Iran province (File photo)
not only relate to Tehran’s nuclear
programme, but also the violation of been conveyed to the US. pipeline, it was also quite clear that
human rights and alleged abetment WHY PROCEED NOW? Second, while Islamabad is re- a coalition led by the Sharifs and
to terror activities. Many of these hree main reasons can be iden- portedly seeking a waiver from sanc- Zardari would soon come to power
sanctions are backed by the EU and tified for Pakistan to go ahead tions by the US in its collaboration at the center, the same combination
continue to remain. Reportedly, in Twith the construction of the IP with Iran, it is also having to negoti- that had inaugurated and promoted
2013, the US warned Pakistan to quit now. First, the $18 billion fine that ate with Tehran over various issues. the IP pipeline in 2013. Last time, the
the IP pipeline project if it wanted to Pakistan has accrued over the IP proj- Iran and Pakistan had a rough start project was abandoned despite the
avoid economic sanctions. Instead, ect is too much for Islamabad to pay. to the year. Iran launched missile commitment to it due to geopoliti-
the US suggested building a Lique- Pakistan was compelled to delay the attacks on the militant group, Jaish cal reasons. This time, with Shehbaz
fied Natural Gas (LNG) terminal project due to the pending loans from al-Adl, in Pakistan’s Balochistan Sharif leading the federal coalition as
that Washington was willing to help IMF, largely led by the US. Pakistan’s province. With the Israel-Hamas war the PM and Asif Ali Zardari back to
finance. Further, alternate projects economy continues to be in the dol- at the backdrop and similar attacks power as the President, its comple-
have been suggested as more suitable drums and the ninth tranche of the into Iraq and Syria by Iran, Pakistan tion is being projected as more likely.
for Pakistan, which Islamabad stated IMF’s Extended Facility Fund is cur- retaliated with counter-strikes and
that it would be exploring. It may be rently under negotiation. However, recalled its envoy from Iran. Though CONCLUSION
noted that Pakistan has been increas- Islamabad’s compulsions are slightly the situation soon returned to nor- akistan is trying to find ways
ing its LNG imports from Qatar.
The delays in constructing the IP different now. It managed to receive malcy, by giving a green signal to the to come out of the civil unrest
pipeline are also linked to financial loans from the IMF last year and IP pipeline, Pakistan hopes to con- Pthat engulfed the country last
assistance and loans that Pakistan has hoping to get the next round of loans tinue to smoothen its ties with Iran. year. For this, it is important for Is-
been receiving from those that op- this year. On the other hand, with a Further, Iran has provided a 180-day lamabad to help mitigate an energy
posed Islamabad’s project with Teh- new government in place, Islamabad extension for Pakistan to complete crisis, revive its economy and manage
ran. For instance, Pakistan’s economy is more worried about its looming en- the IP project by September 2024. its relations with its neighbors and al-
has been in the doldrums and it has ergy crisis. This is visible from the fact This means Iran is more willing to lies. Going ahead with the IP pipeline
depended heavily on the Internation- that Shehbaz Sharif himself is head- compromise with Pakistan than drag deal is expected to help in this direc-
al Monetary Fund (IMF) for money. ing the CCoE and issuing directives Islamabad to the International Court tion. No official statements have been
At such a time, challenging the West-
ern position on Iran meant problems to better the situation. of Arbitration. This appears to be made on this development by those
for Pakistan. In June 2023, Pakistan The energy needs of the coun- a window for Pakistan to get the IP who have stood in opposition to the IP
conveyed that it would be unable to try are only growing and import bills pipeline back on track. deal between Iran and Pakistan. Yet,
begin work on the IP pipeline. It may are rising, along with prices of basic Third, it was the Interim Gov- Pakistan will have to be diplomatical-
be recalled that at the time, Pakistan commodities. Once the IP pipeline is ernment led by Anwaar-ul-Haq Ka- ly dexterous to be able to truly benefit
was negotiating with the IMF to re- functional, it is expected to provide kar that gave the green signal for from its deal with Iran in the long run.
ceive a $3 billion loan via a Stand-By Pakistan with 750 million cubic feet work to commence on the IP pipe-
Arrangement (SBA). Opposition to daily of cheap gas, which is equiv- line. It is said that Kakar, who hails Dr Shrabana Barua is a
Islamabad’s project with Iran was Research Fellow at the Indian Council
also visible from Saudi Arabia as alent to more than seven LNG car- from Balochistan (and belongs to of World Affairs. The views expressed
well as Qatar. Both countries have goes per month. The money for the Balochistan Awami Party), under- are personal.
assisted Pakistan with funds to help it pipeline is available with the GIDC, stands that the gas pipeline with
survive its economic crisis, while each waiting to be released. Therefore, neighboring Iran is a crucial project This article first appeared in
has had its differences with Iran that any further delay in the construction and better judges the importance the Viewpoint section of the website
exacerbate the geopolitical tensions of the pipeline is detrimental to Paki- of such a deal. By the time Kakar’s (www.icwa.in) of Indian Council of
in the region. stan’s interest. This message has also government took the decision on the World Affairs, New Delhi

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