IRAN’S recent proposal to Pakistan, offering affordable rates for oil, electricity and gas, holds immense potential. I think that this offer is a golden opportunity for Pakistan to overcome its energy crisis and improve its economic situation. Pakistan is facing a severe shortage of energy which affects its industrial production, agricultural output and domestic consumption.
The country imports most of its oil and gas from other countries which puts a heavy burden on its foreign exchange reserves and increases its trade deficit. Moreover, Pakistan has to deal with the US sanctions on Iran which prevent it from completing the gas pipeline project that was initiated in 2010. If Iran can provide cheap energy, we should benefit from it. How can India buy oil from Iran in large quantities and make big infrastructure agreements with it despite the US sanctions, but we cannot?
Iran, on the other hand, has abundant reserves of oil and gas which it can export to Pakistan at low prices. Iran also has a surplus of electricity which it can supply to Pakistan through existing transmission lines. Iran has repeatedly offered to sell these commodities to Pakistan, but Pakistan has not been able to accept them due to various political and diplomatic hurdles.
I believe that Pakistan should take advantage of Iran’s offer and negotiate a mutually beneficial deal that does not violate the US sanctions. This would not only help Pakistan meet its energy needs, but also strengthen its relations with Iran which is a neighbouring country and a strategic partner. Pakistan should also explore the possibility of resuming the gas pipeline project with Iran which would provide a long-term solution for its energy security.
Pakistan and Iran have a lot in common in terms of culture, religion, history and geography. They should cooperate with each other in the fields of trade, commerce, tourism, education and defence. They should also work together to promote peace and stability in the region and counter the threats posed by terrorism and extremism.
Pakistan has also made a promising move by preparing a charter of commitment for the investment of Saudi Arabia’s leading company Aramco. According to the report, this investment is likely to be in the Aramco refinery that will be built in Hub with a cost of 12 to 14 billion dollars. This refinery is intended to be established in an area known as the “Hub.” The Special Investment Facilitation Council which was formed by the joint efforts of the military and political leaders of the country, has proposed three projects for collaboration with Saudi Arabia. These projects include setting up a refinery in Hub, giving Saudi Arabia a stake in the gold reserves of Reko Diq and building a 600 MW solar system at the government level.
Furthermore, Pakistan is advised to explore the potential benefits of an offer made by Iran. This offer pertains to the acquisition of affordable energy resources. Taking advantage of this offer could have favourable dividends for Pakistan’s energy security and economic stability.
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