2009 IRAN SANCTIONS:LOST OPPORTUNITY FOR PAKISTAN

[Śakra]

Never trust iran they may offer you electricity at a low introductory rate. Once you're hooked they will raise it exponentially

 

[Samlee]

Never trust iran they may offer you electricity at a low introductory rate. Once you're hooked they will raise it exponentially

It Was Never Supposed To Be Permanent It Was Supposed To Be Stop Gap Arrangement Until We Got Our Projects Online

 

[Indus Pakistan]

Projects

For me, you know what is refreshing? First that you looked at Iran/Pak relationship with just "cost/benefit analysis" and did not once mention Shia/Sunni rubbish. Even more refreshing thus far nobody in this thread has brought in sectarian sickness into the discussion.

You make great points. Keep up the good work!

 

[Kabira]

Looking Back At 2009 The Then Zardari Government Had The Chance Of A Lifetime To Forever Free Pakistan From The Clutches of US and IMF.Owing To My Links I Had The Chance To Look At Some Really Important Documents.I Felt Like Banging My Head On A Wall.What Iran Was Offering Was Practically A $10 Billion Facility.This Was More Than All US Aid Combined.Here Is Just A Small List

1.Iran Offered Electricity at Rs. 6-8 At A Time When Our Thermal Power Power Plants Were Costing Rs.22 per Unit.Not Only This Iran Said You Could Pay This In Rupees and Let Us Use This Money To Purchase Food Products.This Had Many Benefits For Pakistan
a)From 2009 to 2013 Pakistan Was Importing $10 to $15 Billion in Furnace Oil.If We Replaced Our Oil Fired Power Plants With Iranian Power.We Would Have Saved This Bill.This Would Have Easily Converted Our Current Account Deficit Into Surplus.Meaning No Need for IMF
b)Inspite of Importing Billions of Dollars Of Furnace Oil,We Were Still Enduring Load Shedding of Upto 8 to 20 Hours Severely Impacting Our Growth.Energy Is Bottleneck In Our Economy.If 24 Hour Electricity Was Made Available From Iran This Would Have Neutralised The Bottleneck
Our Growth Which Was 2-3% Would Have Become 6-7% Easily.
c)24 Hour Electricity Supply Would Have Meant Massive Increase in Exports

2.Because Of Sanctions Marine Insurance Companies Refused To Insure Ships Docking At Iranian Ports.Iran Requested That Ships Bound For Iran Would Stop At Gwadar And The Goods Be Then Transported To Iran(1.5 Hours Drive).This Would Have Started Up Gwadar Which Was Dormant At The Time

3.Due To Sanctions Iranian Banking System Was Cut Off From SWIFT.China Had To Pay Iran $25 to 30 Billion But Could Not Transfer Funds.So China Made Two Offers to Iran
a)China Will Make Payments On Iran's Behalf and Iran Could Purchase Food Products From Pakistan
b)Pakistan Banking System Was Linked To SWIFT.China Said That Iran Could Open Up An Account Through A Front Man.Pakistan Government Will Give Sovereign Guarantee on That Account.Iran Could Make Purchases and Settle Accounts Shipping Goods Via Gwadar.$25-30
Dollars In Pakistan's Banking System Would Mean $25 to 30 Billion Counted As Our Forex Reserves

4.Now This Is Where It Gets Exciting.
Iran Is Major Crude Oil Exporter.But Due To Obsolete Refineries They Have To Import Gasoline Diesel Petrochemicals etc.
What China Offered Iran Was To Set Up A Gigantic State of The Art Refinery.Iran Could Then Send It's Crude Via Pipeline and Take Back All The Gasoline and Other Products It Needs.In Lieu Of Payments Iran Would Agree To Give The Furnace Oil Produced.So Gwadar Would Get
Free of Cost Fuel Oil Which Would Be Offered at Deep Discount to Shipping Lines.Considering That Fuel Accounts For The Majority of Operational Cost of Ships.Just Imagine Shipping Industry of The World Would Relocate To Gwadar.
Secondly Due To Sanctions Iran Was Having Severe Oil Storage Problems.Sanctions Meant That There Was No One To Buy Oil and The Ones That Were(China and India) Did On Their Terms.China Offered Massive Oil Storage Facility in Gwadar.In Lieu of Rent,A Portion Of The Oil Would Be Given To Pakistan Free of Cost(I Can Explain This Last Point If Requested)I

This Meant We Would Have Enjoyed The Benefits of OPEC Country Without The Oil.It Would Have Helped Iran Neutralize Sanctions.Win Win For All


@Shotgunner51 @AndrewJin @Sinopakfriend

@AZADPAKISTAN2009 @django @LadyFinger @Tipu7

@Viper0011. @LA se Karachi @mr42O @Akheilos @Kaptaan @Azlan Haider @fawad Masīd@waz@AsianUnion @Major Sam @Mentee @ito @Valkyrie @User @Hiptullha @Cornered Tiger@LeGenD @ISI. @MystryMan @New World @Meengla @ziaulislam @Rahil khan @HAKIKAT @RAMPAGE@Muhammad Omar @haviZsultan @dexter @Areesh @Zibago @Moonlight @The Sandman

@django @Zibago @The Sandman @Hell hound @The Eagle

Not everything is as sound, when something sound too good to be true then its likely a lie. Pakistan is desperate for gas yet pipeline isn't being build despite removal of some sanctions. why? Because no one is ready to take risk in long term project till there is guarantee USA will not impose sanctions again.

About oil, the reason Pakistan buy from GCC and not Iran is because 65% of remittances comes from there. You don't need to be genius to figure that out.

Iran even now sells electricity at the rate of rs 11 or more to Gwadar. When did they offered electricity at rs6? Please verify your sources.

There are powerful pro Iran lobby in Pakistan, I'm sure they would have loved that offer.

 

[Kambojaric]

I think gas is cheaper and more environment friendly . right now Iran produce about 60% of its electricity with gas turbines and selling to us at price of .02 USD per kilowatt-hour ( 72 toman or 720 rial )
electricity price starting from .02 $ to .14 $

personally I think it was bad decision from Pakistan to postpone IP project

It would have indeed, but there was a lot of behind the scenes politics going on. American pressure was there of course and more than a third of our electricity generation was taking place from oil (mostly imported from Arab Gulf nations, see below), who all were not happy and used their influence to sidetrack the IP project. Since then we have been gradually working towards reducing reliance on oil with the CPEC project with China specifically focusing on coal and other forms of electricity generation (http://nation.com.pk/business/03-Jul-2017/second-unit-of-sahiwal-power-plant-being-inaugurated-today). I would not be surprised if in the coming years the IP project comes back on track. The trust deficit will have to be worked on but I am sure the Chinese will push towards that direction as they are in their own turn trying to reduce reliance on the Straits of Malacca for their oil and gas needs. Direct access to Iran will strongly benefit them as well.

(2015 power mix)

 

[Samlee]

Not everything is as sound, when something sound too good to be true then its likely a lie. Pakistan is desperate for gas yet pipeline isn't being build despite removal of some sanctions. why? Because no one is ready to take risk in long term project till there is guarantee USA will not impose sanctions again.

About oil, the reason Pakistan buy from GCC and not Iran is because 65% of remittances comes from there. You don't need to be genius to figure that out.

Iran even now sells electricity at the rate of rs 11 or more to Gwadar. When did they offered electricity at rs6? Please verify your sources.

There are powerful pro Iran lobby in Pakistan, I'm sure they would have loved that offer.

Gentleman If You Had Been A Follower Of My Posts You Would Realize I Have Had A Preference for Saudia Arabia.So Please Don't Accuse Me Of Being Pro Iranian

Secondly Read My OP Carefully There Was No Mention of IP Gas Pipeline.These Were Electricity and Fuel Deals Designed to Bypass Sanctions I Can Elaborate Them If You Want

Why Would GCC Countries Oppose Dealings With Iran When They Were Themselves Trading With Iran????

http://www.arabianbusiness.com/uae-qatar-oman-buy-2bn-iranian-electricity-report-447051.html

Do You Know Dubai Itself Is A Transit Hub For Iran

Lastly I Said Rs 6 to 8.This Was Back In 2009 When Sanctions Started To Crunch The Iranian Economy.So Iranians Were Trying To Make Attractive Offers To Anyone Who Would Trade With Them.

Lastly Most of My Sources Are Close Relatives Who Work In Federal Government Who Informed Me and Then There Are Some Documents Which I Had Been Able To Get My Hands On These Included Minutes Of Joint Working Group Meetings Between China-Pakistan and China-Iran As Well Communication to Foreign Office From Iranian and Chinese Embassies
Among Other Documents

 

[BATMAN]

Diameter of pipeline in this picture is so huge, I doubt Pakistan was ever going to buy that much gas.
Looks like 3-3.5 meter
No design work can took place unless input data is clear, and here we have construction going on. In other words, WTF is going on and why do we have Pakistani flag there?

 

[Samlee]

Diameter of pipeline in this picture is so huge, I doubt Pakistan was ever going to buy that much gas.
Looks like 3-3.5 meter
No design work can took place unless input data is clear, and here we have construction going on. In other words, WTF is going on and why do we have Pakistani flag there?

Sir It Was Supposed To Be Extended To China and India

 

[BATMAN]

Sir It Was Supposed To Be Extended To China and India

Than the diameter seems OK!
but than one wonders, why Chinese and Indian flags are missing?

 

[ziaulislam]

Looking Back At 2009 The Then Zardari Government Had The Chance Of A Lifetime To Forever Free Pakistan From The Clutches of US and IMF.Owing To My Links I Had The Chance To Look At Some Really Important Documents.I Felt Like Banging My Head On A Wall.What Iran Was Offering Was Practically A $10 Billion Facility.This Was More Than All US Aid Combined.Here Is Just A Small List

1.Iran Offered Electricity at Rs. 6-8 At A Time When Our Thermal Power Power Plants Were Costing Rs.22 per Unit.Not Only This Iran Said You Could Pay This In Rupees and Let Us Use This Money To Purchase Food Products.This Had Many Benefits For Pakistan
a)From 2009 to 2013 Pakistan Was Importing $10 to $15 Billion in Furnace Oil.If We Replaced Our Oil Fired Power Plants With Iranian Power.We Would Have Saved This Bill.This Would Have Easily Converted Our Current Account Deficit Into Surplus.Meaning No Need for IMF
b)Inspite of Importing Billions of Dollars Of Furnace Oil,We Were Still Enduring Load Shedding of Upto 8 to 20 Hours Severely Impacting Our Growth.Energy Is Bottleneck In Our Economy.If 24 Hour Electricity Was Made Available From Iran This Would Have Neutralised The Bottleneck
Our Growth Which Was 2-3% Would Have Become 6-7% Easily.
c)24 Hour Electricity Supply Would Have Meant Massive Increase in Exports

2.Because Of Sanctions Marine Insurance Companies Refused To Insure Ships Docking At Iranian Ports.Iran Requested That Ships Bound For Iran Would Stop At Gwadar And The Goods Be Then Transported To Iran(1.5 Hours Drive).This Would Have Started Up Gwadar Which Was Dormant At The Time

3.Due To Sanctions Iranian Banking System Was Cut Off From SWIFT.China Had To Pay Iran $25 to 30 Billion But Could Not Transfer Funds.So China Made Two Offers to Iran
a)China Will Make Payments On Iran's Behalf and Iran Could Purchase Food Products From Pakistan
b)Pakistan Banking System Was Linked To SWIFT.China Said That Iran Could Open Up An Account Through A Front Man.Pakistan Government Will Give Sovereign Guarantee on That Account.Iran Could Make Purchases and Settle Accounts Shipping Goods Via Gwadar.$25-30
Dollars In Pakistan's Banking System Would Mean $25 to 30 Billion Counted As Our Forex Reserves

4.Now This Is Where It Gets Exciting.
Iran Is Major Crude Oil Exporter.But Due To Obsolete Refineries They Have To Import Gasoline Diesel Petrochemicals etc.
What China Offered Iran Was To Set Up A Gigantic State of The Art Refinery.Iran Could Then Send It's Crude Via Pipeline and Take Back All The Gasoline and Other Products It Needs.In Lieu Of Payments Iran Would Agree To Give The Furnace Oil Produced.So Gwadar Would Get
Free of Cost Fuel Oil Which Would Be Offered at Deep Discount to Shipping Lines.Considering That Fuel Accounts For The Majority of Operational Cost of Ships.Just Imagine Shipping Industry of The World Would Relocate To Gwadar.
Secondly Due To Sanctions Iran Was Having Severe Oil Storage Problems.Sanctions Meant That There Was No One To Buy Oil and The Ones That Were(China and India) Did On Their Terms.China Offered Massive Oil Storage Facility in Gwadar.In Lieu of Rent,A Portion Of The Oil Would Be Given To Pakistan Free of Cost(I Can Explain This Last Point If Requested)I

This Meant We Would Have Enjoyed The Benefits of OPEC Country Without The Oil.It Would Have Helped Iran Neutralize Sanctions.Win Win For All


@Shotgunner51 @AndrewJin @Sinopakfriend

@AZADPAKISTAN2009 @django @LadyFinger @Tipu7

@Viper0011. @LA se Karachi @mr42O @Akheilos @Kaptaan @Azlan Haider @fawad Masīd@waz@AsianUnion @Major Sam @Mentee @ito @Valkyrie @User @Hiptullha @Cornered Tiger@LeGenD @ISI. @MystryMan @New World @Meengla @ziaulislam @Rahil khan @HAKIKAT @RAMPAGE@Muhammad Omar @haviZsultan @dexter @Areesh @Zibago @Moonlight @The Sandman

@django @Zibago @The Sandman @Hell hound @The Eagle

1. completely baseless
iran was offering electricity at 13-15 rs/unit, we end up agreeing on 12rs/unit for gawadar.
2. importing electricity from iran would thus cost approx 15 rs(adding the infrastructure cost to lay transmission lines from iran to high load centers in Pakistan). this would make electricity as expensive as furnace oil if used in new more efficient plants

3. the reason for high cost was Pakistan using diesel in old plants, otherwise furnace oil or gas has always been cheaper around 12 rs, recently it has dropped to 8rs

4. producing electricity at home at cost of 12 rs far better than importing at 8rs given the input into the economy and job creation

 

[Kabira]

1. completely baseless
iran was offering electricity at 13-15 rs/unit, we end up agreeing on 12rs/unit for gawadar.
2. importing electricity from iran would thus cost approx 15 rs(adding the infrastructure cost to lay transmission lines from iran to high load centers in Pakistan). this would make electricity as expensive as furnace oil if used in new more efficient plants

3. the reason for high cost was Pakistan using diesel in old plants, otherwise furnace oil or gas has always been cheaper around 12 rs, recently it has dropped to 8rs

4. producing electricity at home at cost of 12 rs far better than importing at 8rs given the input into the economy and job creation

Pakistan isn't depending on Iran for even Gwadar now hence building 330MW coal plant there, which will provide cheaper electricity and connect Gwadar with national grid as well.

 

[pin gu]

Diameter of pipeline in this picture is so huge, I doubt Pakistan was ever going to buy that much gas.
Looks like 3-3.5 meter
No design work can took place unless input data is clear, and here we have construction going on. In other words, WTF is going on and why do we have Pakistani flag there?

http://www.yjc.ir/fa/news/4941352/اجرای-خط-لوله-گاز-دامغان-کیاسر-تسریع-شود

Damghan-Kiansar pipe

under 1 million population city and sometimes these cities have more that one pipe line to secure their gas needs .
we are talking about Pakistan with 200 million population so its not that big

 

[GreenGuy]

Really nice article but I have one question.

Why does OP write every word with a capital letter?

 

[Hell hound]

Looking Back At 2009 The Then Zardari Government Had The Chance Of A Lifetime To Forever Free Pakistan From The Clutches of US and IMF.Owing To My Links I Had The Chance To Look At Some Really Important Documents.I Felt Like Banging My Head On A Wall.What Iran Was Offering Was Practically A $10 Billion Facility.This Was More Than All US Aid Combined.Here Is Just A Small List

1.Iran Offered Electricity at Rs. 6-8 At A Time When Our Thermal Power Power Plants Were Costing Rs.22 per Unit.Not Only This Iran Said You Could Pay This In Rupees and Let Us Use This Money To Purchase Food Products.This Had Many Benefits For Pakistan
a)From 2009 to 2013 Pakistan Was Importing $10 to $15 Billion in Furnace Oil.If We Replaced Our Oil Fired Power Plants With Iranian Power.We Would Have Saved This Bill.This Would Have Easily Converted Our Current Account Deficit Into Surplus.Meaning No Need for IMF
b)Inspite of Importing Billions of Dollars Of Furnace Oil,We Were Still Enduring Load Shedding of Upto 8 to 20 Hours Severely Impacting Our Growth.Energy Is Bottleneck In Our Economy.If 24 Hour Electricity Was Made Available From Iran This Would Have Neutralised The Bottleneck
Our Growth Which Was 2-3% Would Have Become 6-7% Easily.
c)24 Hour Electricity Supply Would Have Meant Massive Increase in Exports

2.Because Of Sanctions Marine Insurance Companies Refused To Insure Ships Docking At Iranian Ports.Iran Requested That Ships Bound For Iran Would Stop At Gwadar And The Goods Be Then Transported To Iran(1.5 Hours Drive).This Would Have Started Up Gwadar Which Was Dormant At The Time

3.Due To Sanctions Iranian Banking System Was Cut Off From SWIFT.China Had To Pay Iran $25 to 30 Billion But Could Not Transfer Funds.So China Made Two Offers to Iran
a)China Will Make Payments On Iran's Behalf and Iran Could Purchase Food Products From Pakistan
b)Pakistan Banking System Was Linked To SWIFT.China Said That Iran Could Open Up An Account Through A Front Man.Pakistan Government Will Give Sovereign Guarantee on That Account.Iran Could Make Purchases and Settle Accounts Shipping Goods Via Gwadar.$25-30
Dollars In Pakistan's Banking System Would Mean $25 to 30 Billion Counted As Our Forex Reserves

4.Now This Is Where It Gets Exciting.
Iran Is Major Crude Oil Exporter.But Due To Obsolete Refineries They Have To Import Gasoline Diesel Petrochemicals etc.
What China Offered Iran Was To Set Up A Gigantic State of The Art Refinery.Iran Could Then Send It's Crude Via Pipeline and Take Back All The Gasoline and Other Products It Needs.In Lieu Of Payments Iran Would Agree To Give The Furnace Oil Produced.So Gwadar Would Get
Free of Cost Fuel Oil Which Would Be Offered at Deep Discount to Shipping Lines.Considering That Fuel Accounts For The Majority of Operational Cost of Ships.Just Imagine Shipping Industry of The World Would Relocate To Gwadar.
Secondly Due To Sanctions Iran Was Having Severe Oil Storage Problems.Sanctions Meant That There Was No One To Buy Oil and The Ones That Were(China and India) Did On Their Terms.China Offered Massive Oil Storage Facility in Gwadar.In Lieu of Rent,A Portion Of The Oil Would Be Given To Pakistan Free of Cost(I Can Explain This Last Point If Requested)I

This Meant We Would Have Enjoyed The Benefits of OPEC Country Without The Oil.It Would Have Helped Iran Neutralize Sanctions.Win Win For All


@Shotgunner51 @AndrewJin @Sinopakfriend

@AZADPAKISTAN2009 @django @LadyFinger @Tipu7

@Viper0011. @LA se Karachi @mr42O @Akheilos @Kaptaan @Azlan Haider @fawad Masīd@waz@AsianUnion @Major Sam @Mentee @ito @Valkyrie @User @Hiptullha @Cornered Tiger@LeGenD @ISI. @MystryMan @New World @Meengla @ziaulislam @Rahil khan @HAKIKAT @RAMPAGE@Muhammad Omar @haviZsultan @dexter @Areesh @Zibago @Moonlight @The Sandman

@django @Zibago @The Sandman @Hell hound @The Eagle

WTF why would some one lose a golden opportunity like this cruse you zardari and co

 

[Samlee]

1. completely baseless
iran was offering electricity at 13-15 rs/unit, we end up agreeing on 12rs/unit for gawadar.
2. importing electricity from iran would thus cost approx 15 rs(adding the infrastructure cost to lay transmission lines from iran to high load centers in Pakistan). this would make electricity as expensive as furnace oil if used in new more efficient plants

3. the reason for high cost was Pakistan using diesel in old plants, otherwise furnace oil or gas has always been cheaper around 12 rs, recently it has dropped to 8rs

4. producing electricity at home at cost of 12 rs far better than importing at 8rs given the input into the economy and job creation

1.Really Where Did You Get That From?????

Under the deal a power tariff ranging between Rs 6 to Rs 8.5 per unit was finalised that would be applicable for three years from January 2011 to December 2014

https://www.pakistantoday.com.pk/2011/06/25/pakistan-iran-to-finalise-import-of-1000mw-electricity/

2.Again You Are Wrong The Reason Was That Oil Prices Had Shot Upto More Than $100 per Barrel.There Was Even A Time When The Per Unit Cost of Production for Oil Based IPPs Was More Than Rs 20 Per Unit and Rental Power Reached Rs 41 per Unit

https://tribune.com.pk/story/199868...ectricity-at-shocking-price-of-rs41-per-unit/

3.Furnace Oil Cost Around Rs 15 to 16 Not Rs 12 During The Period I Mentioned Do You Live In Some Alternative Reality???????

https://www.dawn.com/news/1057746

It Has Only Dropped Due to Fall In Oil Prices

Really nice article but I have one question.

Why does OP write every word with a capital letter?

Sorry Man Force of Habit