Pakistan has made a significant move in addressing its energy needs by greenlighting the construction of a pipeline to import natural gas from Iran, a decision likely to raise eyebrows among some of its western allies. The approval comes after years of reluctance and hurdles, including investor apprehension due to United Nations sanctions against Iran.
The Cabinet Committee on Energy has given the green signal to kickstart the construction of an 80-kilometer segment of the 800-kilometer pipeline, stretching from the Iranian border to Gwadar, a strategic port city in Pakistan. Notably, the funding for this segment will come from the government’s coffers, reflecting the urgency perceived by Pakistani authorities to secure their energy requirements.
Pakistan’s hesitance to pursue the pipeline project stemmed from international sanctions against Iran, coupled with restrictions on dollar transactions. However, with domestic energy resources depleting rapidly, and the share of imported liquefied natural gas already comprising 29% of the total supply, the need for a reliable energy source has become paramount.
The bilateral gas deal between Pakistan and Iran, signed in 2013 for a duration of 25 years, underscores Pakistan’s determination to secure its energy future. Despite potential legal battles in international courts looming over the agreement, Pakistan remains steadfast in its commitment to meet its energy demands.
The decision to proceed with the pipeline construction also highlights Pakistan’s balancing act between its historical alliances with both the United States and Iran. Traditionally, Pakistan has maintained close ties with both nations, navigating a delicate diplomatic landscape.
For Pakistan, ensuring a steady supply of natural gas is not merely a matter of meeting industrial needs but also crucial for sustaining economic growth and development. With domestic resources dwindling, and the country’s industry relying heavily on imported energy, the pipeline project represents a crucial step towards achieving energy security.
As construction begins on the pipeline, Pakistan remains cognizant of the geopolitical ramifications of its decision. However, with energy security at the forefront of its agenda, Pakistan moves forward with determination, navigating the complex terrain of international relations to secure its future.
Sources By Agencies
