Pakistan insists troubled Iran pipeline still possible

Published October 31, 2013
Pakistan's Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi.—AFP Photo
Pakistan's Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi.—AFP Photo

ISLAMABAD: Pakistan insisted Thursday that it was still keen to press ahead with a troubled pipeline to bring gas from Iran, despite comments by an Iranian minister that he had no hope for its completion.

The $7.5-billion project, aimed at easing Pakistan's chronic gas and electricity shortages, has drawn threats of US sanctions and run into repeated problems.

The Iranian side is almost complete but Pakistan has struggled to find the money to pay for the 780-kilometre (485-mile) section to be built on its side of the border.

Earlier this month Islamabad asked Tehran to stump up $2 billion to finish construction. Iranian Oil Minister Bijan Zanganeh said Wednesday there was no hope of exporting gas to Pakistan because the financing was not there.

But his Pakistani counterpart insisted the project would be completed.

“There is absolutely no chance to abandon the pipeline project, because we need it,” Federal Minister for Petroleum and Natural Resources, Shahid Khaqan Abbasi, said on a local news channel.

A foreign ministry spokesman said Pakistan was “committed to all options” to tackle energy shortages, which cause long blackouts in the summer and problems with gas supply in the winter.

Iran currently produces around 600 million cubic metres (21.2 billion cubic feet) of gas per day, almost all of which is consumed domestically. Its only foreign client is Turkey, which buys about 30 million cubic metres per day.

With the economy and government finances in a poor state, if Iran will not pay to complete the pipeline it is unclear where Pakistan could find the money it needs.

Investors and other governments are reluctant to get involved in the project because of the threat of breaching international sanctions on Iran.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

United stance
Updated 13 Nov, 2024

United stance

It would've been better if the OIC-Arab League summit had announced practical measures to punish Israel.
Unscheduled visit
13 Nov, 2024

Unscheduled visit

Unusual IMF visit shows the lender will closely watch implementation of programme goals to prevent it from derailing.
Bara’s businesswomen
13 Nov, 2024

Bara’s businesswomen

Bara’s brave women have proven that with the right support, societal barriers can be overcome.
System failure
Updated 12 Nov, 2024

System failure

Relevant institutions often treat right to internet connectivity with the same disdain as they do civil and political rights.
Narrowing the gap
12 Nov, 2024

Narrowing the gap

PERHAPS a pat on the back is in order for the ECP. Together with Nadra, it has made visible efforts to reduce...
Back on their feet
12 Nov, 2024

Back on their feet

A STIRRING comeback in the series has ended Pakistan’s 22-year wait for victory against world champions Australia....