PAKISTAN and Russia are writing a new chapter in their bilateral relationship by showing the serious intent to promote cooperation in different fields.
The enhanced levels of engagements between the two sides in this regard are of immense importance and it is heartening to note that these are also bearing fruit.
In a major development at the seventh meeting of Russia-Pakistan intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation the two sides whilst signing several agreements to promote cooperation in different sectors also agreed to sign the Shareholders and Facilitation Agreements for $ 3 billion Pakistan Stream Gas Pipeline by February next year.
Given the energy shortage faced by the country, this 1,100-kilometre-long project, formerly known as the North-South Pipeline, is very important for Pakistan as it will secure the delivery of 12.3 billion cubic meters (bcm) of natural gas per year from the liquefied natural gas (LNG) terminals in Karachi and Gwadar to the large north-central city of Lahore.
Importantly, this project will be the first such large-scale economic initiative between Moscow and Islamabad undertaken since the mid-1970s.
From an economic point of view, the gas pipeline project promises to be highly beneficial to Pakistan.
On the one hand, as a net importer of energy, Pakistan will be able to obtain new steady sources of natural gas indispensable for its economy and transport this gas to the densely populated industrialized north.
For Russia, the gas pipeline will also yield both direct and indirect value. In fact, it will usher in a range of new economic prospects and opportunities for Russia in this region.
We believe that this will also open doors for Russia to join China-Pakistan Economic Corridor Project (CPEC) and use Gwadar Port for its exports.
If this happens, this will give a tremendous boost to the economic cooperation between these three countries. Hence, the gas project is a win-win both for Pakistan and Russia and hence there should not be any further delay in execution of the project.
