Pak-Iran pipeline: KSE-100 index plumbs 441 points fearing sanctions

[farhan_9909]

KARACHI: Pakistan stocks slumped almost 2.5 percent on Monday on fears of possible US sanctions following the ground-breaking ceremony of a much-delayed $7.5 billion gas pipeline from Iran, traders said.

The Karachi Stock Exchange’s benchmark KSE-100 index shed 441.62 points, or 2.46 percent, to close at 17,522.56 with 173.03 million shares traded.

“There was a panic-like situation in the market as investors fear United States may impose economic sanctions on Pakistan because of the gas pipeline,” analyst Mohammad Sohail of Topline Securities told AFP.

“The market experienced turmoil all the day, it never recovered till it suspended trading.”
A consortium is to start work today on the gas pipeline despite American warnings of possible sanctions.

Pakistani President Asif Ali Zardari held talks last month in Tehran with Iranian counterpart Mahmoud Ahmadinejad and supreme leader Ayatollah Ali Khamenei, who urged Islamabad to press ahead with the project.

Zardari’s spokesperson said the world should realise the project was being commissioned “purely to meet economic needs of the country”.

Pakistani analysts said a statement from the US State Department was expected later in the evening, which could determine the future course of the market.

“The market’s future trends depend on what the US State Department says in its next statement about the gas pipeline,” Sohail said.

Pak-Iran pipeline: KSE-100 index plumbs 441 points fearing sanctions – The Express Tribune

I hope this trend doesnt continue for the whole week or else till election we will reach 10k points level again as was in the 2008

 

[somebozo]

Pipe line drama fail. PPP has lost their mind they know whatever mess they make it will be on the shoulders of next government to solve. If sanctions fall on Pakistan stupid awam will still praise the past government for getting the project starting and curse the incoming new government for the sanctions. PPP knows they stand a slim chance in upcoming elections so its time for "bhagte chore ke langooti he sahe".

 

[Abu Zolfiqar]

Find a way to cut out these speculators

 

[Kaniska]

Can any senior member provide us a realistical estimate of benifit of Iran and Pakistan pipeline and how does economically benifit in case any kind of sanction happens? ( Please donot think that I am waiting for Pakistan to get sanction rather i am assuming that Pakistan leader might have done a SWOT analysis about the entire project)...

 

[Abu Zolfiqar]

Pipe line drama fail. PPP has lost their mind they know whatever mess they make it will be on the shoulders of next government to solve. If sanctions fall on Pakistan stupid awam will still praise the past government for getting the project starting and curse the incoming new government for the sanctions. PPP knows they stand a slim chance in upcoming elections so its time for "bhagte chore ke langooti he sahe".

Actually the main fail is the assessment of TAPI - a pipeline project which amazingly bypasses Iran (whose south pars oil field is correctly evaluated and assessed)

People who think TAPI is a viable alternative are worthy of laughter, finger pointing and ridicule

 

[somebozo]

Actually the main fail is the assessment of TAPI - a pipeline project which amazingly bypasses Iran (whose south pars oil field is correctly evaluated and assessed)

People who think TAPI is a viable alternative are worthy of laughter, finger pointing and ridicule

Dont forget that Iran is facing a collective might of GCC and West as well because South Pars is shared between Iran and Qatar and the GCC wishes to cripple Iran so Qatar can single handedly avail all the benefits of high gas prices.


Pakistani persuasion with IP is to punish India for withdrawal by concentrating more resources on IP and delaying TAPI which energy starved india desperately needs. We are also playing a fine gamble here knowing that American interests in Central Asia and Indian hunger for energy and Pakistan strategic location in the middle will be enough to avert any potential sanctions.

 

[IndoUS]

Can any senior member provide us a realistical estimate of benifit of Iran and Pakistan pipeline and how does economically benifit in case any kind of sanction happens? ( Please donot think that I am waiting for Pakistan to get sanction rather i am assuming that Pakistan leader might have done a SWOT analysis about the entire project)...

The big problem is that Pakistan needs oil to support its economy and Iran is willing to provide them. Sanctions from the US (if sanctioned) will affect the economy greatly. But then there also the problem that if they don't go for the pipeline deal they would be stuck with and energy crisis. So it is up to the current government to pick and choose which side to choose.

While on one hand you have possible sanctions on the economy, and on the other you have a increasing energy demand for the country which if not met will slow down the economy even further and the companies would lose trust on the government to provide them with adequate resources to function properly in which case they will start to move to other countries.

 

[Abu Zolfiqar]

What is collective might of GCC? You mean collective might of the US

As for last part of your assessment I agree. Interesting times ahead

As for sanctions - been there and done that



Fear is no policy
surrender is no option

 

[Kaniska]

Dont forget that Iran is facing a collective might of GCC and West as well because South Pars is shared between Iran and Qatar and the GCC wishes to cripple Iran so Qatar can single handedly avail all the benefits of high gas prices.


Pakistani persuasion with IP is to punish India for withdrawal by concentrating more resources on IP and delaying TAPI which energy starved india desperately needs. We are also playing a fine gamble here knowing that American interests in Central Asia and Indian hunger for energy and Pakistan strategic location in the middle will be enough to avert any potential sanctions.

I agree with you to some extent...But what i feel is that Pakistan is slowly trying to play a role in multipolar world and trying to find a rightful place in diplomatic chess game in South and Central Asia...I am not sure how much sincere is Pakistan GOV,but if Pak gov goes ahead with this deal, Pakistan will release itself from the sackle and image of an anti India country in South Asia to a country who can take its own descison for its own intrest rather than for something else...Its a good move if Pakistan really go for it....Time will only say in which way Pakistan goes in next 10 year...

 

[Windjammer]

What is collective might of GCC? You mean collective might of the US

As for last part of your assessment I agree. Interesting times ahead

As for sanctions - been there and done that



Fear is no policy
surrender is no option

As a former Pakistani FM said, due to sanctions, we have become a nuclear power, else we would still be driving around in Korean era tanks and Jeeps. !!

 

[rohailmalhi]

Its a job well done by this GOV. As far as sanctions are concern we have survived the worst and we can survive these so called sanctions as well. BTW Iran is an excellent example of Western Sanctions . They are not just surviving but also making alot of progress on their own .so i think we shouldnt be afraid of these sanctions .

TAPI is not a feasible project , its a fantasy candy which Uncle SAM gave to Pakistan as an alternative to IP project. This fantasy candy seem very sweet in our dreams but it will definitely not good for the health of Pakistan.

First complete the IP project and we can also take part in TAPI if it can help us gain favors from central states.

PS: I appreciate Zardari for taking this one step in the interest of Pakistan.

 

[Abu Zolfiqar]

As a former Pakistani FM said, due to sanctions, we have become a nuclear power, else we would still be driving around in Korean era tanks and Jeeps. !!

Colin Powell (former Chairman of Joint Chiefs of Staff Comm. & US Secretary of State) is on record as having said Pakistan was “sanctioned to the eyeballs“

Our gift for the alliance and assistance to the mujahideen was the Pressler Amendment/sanctions/cut-off of arms supplies etc.

Curiously, predictions were made that Pakistan would become a failed nation by 2002.

(Pakistan was the fastest growing economy in Asia by 2002)


We see a SOMEWHAT similar theme today as we saw yesteryear:


decisions to be made, based on consensus and based on national interest; we knew about the risks of the Pressler Amendment so it isn't as entirely "unfair" as we claim --regardless of how needlessly fickle the alliance was at times.

today we know well about the risks of sanctions -- and bets will have to be hedged


my personal opinion is that the I-P pipeline is in our national interests, and as long as "GLOC" is one of our main leverage points we should ignore threats of sanctions.

Some wildly and emotionally over-estimate; and some under-estimate our leverage here

 

[Bratva]

As a former Pakistani FM said, due to sanctions, we have become a nuclear power, else we would still be driving around in Korean era tanks and Jeeps. !!

And our navy and airforce was forced to go back to stone age era. All those who says we will survive another sanction era, than you are living in imaginary world this time.

This time Army,Airforce and Nave will be badly screwed, we won't be able to sustain war on terror ue to economic and military sanctions and rest is left to imagine when you all come of your high horses of been there done that

 

[chauvunist]

@Abu Zolfiqar sir,What does GLOC Mean....

 

[Abhishek_]

^ground lines of communication?

on topic: it seems a temporary dip. the pipeline is good news and markets will react well when the benefits start showing.