third eye
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Crossing the path with KSA is something Pk needs to consider very closely..
Pipeline may isolate Pakistan globally - thenews.com.pk
The groundbreaking ceremony of the Iran-Pakistan gas pipeline project has been carried out, though its completion still seems to be a hard task. President Asif Zardari inaugurated the project in the last few days of the PPP government. However, if he really finds the project feasible, he should have done it in the early days of his government. In that case, it would have benefited his party in the upcoming elections.
However, the development will definitely benefit his party in the upcoming elections, as the nation appears to be delighted by and excited about the inauguration. People are happy that the project will bring prosperity to the country, and they are excited that it will hit hard the US hegemonic designs in the region.
The project may provide the US and UN with a reason to slap restrictions on Pakistan, and it may also invite the anger of Saudi Arabia and other Gulf states. If Imran Khan or Nawaz Sharif get a chance to make the next government after Election 2013, they will have to suffer a lot of political disadvantages if they decide to abandon the project. They will have to face the charges of bowing down before the USA if they decide to withdraw from the project.
The USA is opposing the project tooth and nail. The head of the Pakistani chapter of the Asian Development Bank (ADB) said recently that Pakistan was facing a loan repayment crisis and it will have to borrow up to $9 billion from the IMF by the end of this year. The claim has not been refuted by the Pakistani authorities so far. Former governor, State Bank of Pakistan, Shahid Kardar has termed the ADB claim genuine saying Pakistan is bound to repay $5 billion within two years. To repay previous loans, Pakistan will have to pay $6.5 billion. Our exports amount to $23.5 billion and import bill amounts to a staggering $45 billion. To overcome this shortfall, Pakistan has no choice but to borrow from the IMF. And if we fail on repayments, we will have to get our loans rescheduled. In case of failure, we may get defaulter status in the world market.
Recently, Victoria Nuland, a spokesperson for the US State Department, warned the gas pipeline would raise serious concerns under our Iran Sanctions Act. She said the project may result in curbs on Pakistan. And even if we ignore the US restriction, Washington may seek the IMF not to extend any loans to Pakistan at all or attach strict terms and conditions to it. The IMF is always very close to the USA and European countries.
The World Bank, mostly headed by an American, gives Pakistan $2 billion aid annually. We also get $1.5 billion from the USA under the Kerry-Logar arrangement, and also demand $2 billion annually as the coalition support from Washington. That means, we receive up to $4.75 billion from the US and its allies annually. We have to get spare-parts of F-16s and other important machines from the USA. It all shows that without finding any alternative arrangement to end dependence on the USA, starting the gas pipeline project does not appear to be a wise decision. The project has not only invited the anger of the USA but also Saudi Arabia and other Gulf states.
Pakistan has signed an agreement for buying gas at the rate of 78 percent of the crude oil price in the international market, which implies that Pakistan will get the gas for $78, which will be equal to a heat producing crude oil whose price will be $100 in the international market. However, the gas leakage and pilferage cases in Pakistani territory will cost the country more than 78 percent for the price of gas as the crude oil price. According to Indian newspapers, Pakistan, Afghanistan and India had imported gas last year from Turkmenistan at the rate of 55 percent of the crude oil price.
Electricity generation expert Dr Umar Masood has said the electricity generating plants only working on turbines can be run on gas, while the power generating plants being run by engines cannot be run with gas fuel; they can only be fuelled with furnace oil. Only 20 percent of private power plants are turbine operated. However, most of the Wapda power plants can be operated with gas. The Iranian gas can also be used for CNG fuel for automobiles.
Last year, Pakistan had imported oil worth $15 billion. Presently, Pakistan has to resort to loadshedding due to non-availability of sufficient fuel, because the country does not have enough money to import the required fuel. While the fuel consumption will multiply after the Iranian gas import into Pakistan, new power plants will be installed, giving rise to fuel consumption far more than $15 billion. Last year, Pakistans imports were worth $45 billion against its exports worth $23.5 billion.
The US is expected not to take major action against the agreement till 2014 while its forces are trapped in Afghanistan. After that, there will be hardly 20,000 American troops staying in Afghanistan till 2016, which will not be a big enough strength to bar the US from taking action against Pakistan. During Pakistans eight-month long blockage of Nato supplies to Afghanistan through its territories, America had discovered various alternative routes.
Pipeline may isolate Pakistan globally - thenews.com.pk
The groundbreaking ceremony of the Iran-Pakistan gas pipeline project has been carried out, though its completion still seems to be a hard task. President Asif Zardari inaugurated the project in the last few days of the PPP government. However, if he really finds the project feasible, he should have done it in the early days of his government. In that case, it would have benefited his party in the upcoming elections.
However, the development will definitely benefit his party in the upcoming elections, as the nation appears to be delighted by and excited about the inauguration. People are happy that the project will bring prosperity to the country, and they are excited that it will hit hard the US hegemonic designs in the region.
The project may provide the US and UN with a reason to slap restrictions on Pakistan, and it may also invite the anger of Saudi Arabia and other Gulf states. If Imran Khan or Nawaz Sharif get a chance to make the next government after Election 2013, they will have to suffer a lot of political disadvantages if they decide to abandon the project. They will have to face the charges of bowing down before the USA if they decide to withdraw from the project.
The USA is opposing the project tooth and nail. The head of the Pakistani chapter of the Asian Development Bank (ADB) said recently that Pakistan was facing a loan repayment crisis and it will have to borrow up to $9 billion from the IMF by the end of this year. The claim has not been refuted by the Pakistani authorities so far. Former governor, State Bank of Pakistan, Shahid Kardar has termed the ADB claim genuine saying Pakistan is bound to repay $5 billion within two years. To repay previous loans, Pakistan will have to pay $6.5 billion. Our exports amount to $23.5 billion and import bill amounts to a staggering $45 billion. To overcome this shortfall, Pakistan has no choice but to borrow from the IMF. And if we fail on repayments, we will have to get our loans rescheduled. In case of failure, we may get defaulter status in the world market.
Recently, Victoria Nuland, a spokesperson for the US State Department, warned the gas pipeline would raise serious concerns under our Iran Sanctions Act. She said the project may result in curbs on Pakistan. And even if we ignore the US restriction, Washington may seek the IMF not to extend any loans to Pakistan at all or attach strict terms and conditions to it. The IMF is always very close to the USA and European countries.
The World Bank, mostly headed by an American, gives Pakistan $2 billion aid annually. We also get $1.5 billion from the USA under the Kerry-Logar arrangement, and also demand $2 billion annually as the coalition support from Washington. That means, we receive up to $4.75 billion from the US and its allies annually. We have to get spare-parts of F-16s and other important machines from the USA. It all shows that without finding any alternative arrangement to end dependence on the USA, starting the gas pipeline project does not appear to be a wise decision. The project has not only invited the anger of the USA but also Saudi Arabia and other Gulf states.
Pakistan has signed an agreement for buying gas at the rate of 78 percent of the crude oil price in the international market, which implies that Pakistan will get the gas for $78, which will be equal to a heat producing crude oil whose price will be $100 in the international market. However, the gas leakage and pilferage cases in Pakistani territory will cost the country more than 78 percent for the price of gas as the crude oil price. According to Indian newspapers, Pakistan, Afghanistan and India had imported gas last year from Turkmenistan at the rate of 55 percent of the crude oil price.
Electricity generation expert Dr Umar Masood has said the electricity generating plants only working on turbines can be run on gas, while the power generating plants being run by engines cannot be run with gas fuel; they can only be fuelled with furnace oil. Only 20 percent of private power plants are turbine operated. However, most of the Wapda power plants can be operated with gas. The Iranian gas can also be used for CNG fuel for automobiles.
Last year, Pakistan had imported oil worth $15 billion. Presently, Pakistan has to resort to loadshedding due to non-availability of sufficient fuel, because the country does not have enough money to import the required fuel. While the fuel consumption will multiply after the Iranian gas import into Pakistan, new power plants will be installed, giving rise to fuel consumption far more than $15 billion. Last year, Pakistans imports were worth $45 billion against its exports worth $23.5 billion.
The US is expected not to take major action against the agreement till 2014 while its forces are trapped in Afghanistan. After that, there will be hardly 20,000 American troops staying in Afghanistan till 2016, which will not be a big enough strength to bar the US from taking action against Pakistan. During Pakistans eight-month long blockage of Nato supplies to Afghanistan through its territories, America had discovered various alternative routes.
)))) ok. The project is supposed to be completed by 2014.
