Home »Fuel and Energy » Pakistan » Because of US-Saudi pressure: Iran-Pakistan gas project unlikely to materialize

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  • Jun 6th, 2017
  • Comments Off on Because of US-Saudi pressure: Iran-Pakistan gas project unlikely to materialize
The multi-billion dollar Iran-Pakistan gas pipeline project is unlikely to materialize in the near future due to international sanctions on Tehran and the geopolitical situation in Middle East. Official sources said though Pakistan has not abandoned the project, yet work on the project has yet to start due to international sanctions on Iran which remain a major hurdle in the execution of the project.

"The government is pursuing the implementation of the project. Pakistan is ready to complete the project within 30 months after the removal of international sanctions on Iran as per the agreement", an official dealing with IP project told Business Recorder.

After the Joint Comprehensive Plan of Action (JCPA) signed between Iran and P5 plus 1, he said that the government was hoping for removal of the sanctions on Iran to begin project implementation but this has not yet taken place.

He said that the Pakistan government was serious about the project and had allocated Rs 25 billion in budget 2016-17 to develop gas infrastructure in the country including for the implementation of the IP project. However, a former Director General Gas, Ministry of Petroleum and Natural Resources told Business Recorder on condition of anonymity that besides international sanctions on Iran, the pressure from Untied States and Saudi Arabia was also a major impediment in executing the mega gas project.

"I see no immediate breakthrough in the project, especially due to the growing US-Saudi co-operation and the two will never support such a mega project in the region and they will continue to oppose the project", he said. He pointed out that there was a little hope for the implementation of the IP project when Tehran signed a historic nuclear deal with world powers in Vienna on July 14, 2015, but the deal came under threat after the election of US President Donald Trump who has taken a tougher stance against Iran.

In Riyadh Summit held on May 20-21, 2017, the US President Donald Trump along with Saudi King Salman bin Abdulaziz Al Saud strongly criticized Iran and held it responsible for global extremism. Prime Minister Nawaz Sharif also attended the Summit.

President Trump, in his speech, urged the Arab and Muslim countries to freeze channels of funding for terror groups including ISIS and Hezbollah, and highlighted US and Saudi commitment to economic development, inter-faith peace and the fight against terrorism

Pakistan is part of the 41-member Islamic military alliance led by Saudi Arabia which analysts describe as an anti-Iran alliance. They said that the growing influence of Saudi Arabia on the Muslim countries as well as on Pakistan will not allow mega projects like the IP gas pipeline project with Iran to materialize.

Pakistan and Iran have always expressed their resolve to maintain 'brotherly and cooperative" relations, yet the situation on the border has invariably undermined efforts to enhance bilateral co-operation. On May 9, 2017, Pakistan summoned Iranian Ambassador to Islamabad to convey our concerns over the reported remarks of the Iranian Chief of Staff of the Armed Forces regarding cross border actions.

"It was conveyed to the Iranian Ambassador that such remarks were against the spirit of brotherly relations existing between the two countries", Foreign Office said in a statement. The frequency of recent high level exchanges from both countries augers well for strengthening bilateral co-operation and during the visit of the Iranian Foreign Minister to Islamabad on 3rd May 2017, the two agreed to enhance co-operation on border issues, the statement added. It further said that the Iranian side was urged to avoid issuance of such statements that could vitiate the environment of fraternal relations.



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