PAKISTAN has reportedly proposed a viable solution of the ongoing differences between Pakistan and Iran over the fate of the IP gas pipeline project.
Citing continued and intensified US sanctions against Tehran, Islamabad has requested that Iran grant a ten year extension till 2035 for its implementation.
The project, also described as ‘Peace Pipeline’, was conceived way back in the 1950s but a formal agreement between Pakistan and Iran was signed in 1995. India also joined but withdrew in 2009 in the face of US sanctions and in hindsight Pakistan too should have opted out as its implementation was not a possibility as long as American sanctions were there. It is sad to point out that instead of institutionalized decisions on merit, even strategic issues are decided in whimsical and transitory fashion and the country frequently lands into trouble because of short-sightedness as we also witnessed in the case of Reko-Diq and Karkey Rental Power Plant. It is also ironic that the negotiating teams miserably failed to safeguard national interests during attempts to review the terms of the agreement with the Iranian side. Pakistan and Iran enjoy cordial relations and both financial and strategic compulsions of Islamabad are fully known to Tehran. Therefore, Iran should not have gone to the arbitration court in Paris seeing whopping damages of $18 billion under the Gas Sales Purchase Agreement. However, now that a suit has been filed, attempts should be made to sort out the issue out of court as litigation and its consequences will have a far-reaching impact on the bilateral relations. Implementation of the project remains uncertain for the foreseeable future in view of renewed sanctions on Iran and dangers of US-Iran conflict becoming a reality as latest reports indicate the American naval fleet is moving towards the region. Pakistan is energy deficient and it surely needs reliable arrangements like piped gas from Iran as well as Turkmenistan but geo-strategic realities cannot be ignored including concerns about safety and security of these pipelines as they are to be routed through troubled regions. According to reports, a Ministerial Oversight Committee (MoC), headed by Deputy Prime Minister and Foreign Minister Senator Ishaq Dar, is evaluating multiple options to avert significant financial exposure. The issue must be taken up at the highest level with Iran as this has the potential to sort out the problem amicably in view of personal rapport of the leadership of the two countries.
