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US tries to halt Iran-Pakistan pipeline

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US tries to halt Iran-Pakistan pipeline
By Syed Hamad Ali

When Pakistani labourer Imran Haider became trapped inside a lift in a market in Lahore, during one of the frequent power shortages in the city, futile attempts were made to rescue him. But there was just not enough time, he wilted and died.

In a country where temperatures can reach between 30-50 degrees centigrade, frequent power shortages that can last up to 12 hours have been the cause of widespread protests and anger against a government seen as too inept to deal with the situation. From emergency patients in hospitals to schools and businesses – their social and economic impact has been crippling.

This aspect of Pakistan’s troubled ‘power politics’ has placed the government in a difficult position – not just internally but also in regards to the country’s foreign relations.

Last month Prime Minister Yousaf Raza Gilani said Pakistan would be buying 1100 megawatts of electricity from Iran, as well as oil and gas. The two countries have been working for years towards building an Iran-Pakistan gas pipeline.

But the United States government has expressed its disapproval, warning the project could be in violation of the Iran Sanctions Act. Previously India was also a part of the pipeline project but pulled out in 2009 after the US made a nuclear deal with the country. The pressure on Pakistan, however, continues.

‘As we are ratcheting up pressure on Iran, it seems somewhat inexplicable that Pakistan would be trying to negotiate a pipeline,’ said US Secretary of State Hillary Clinton. ‘And there is an alternative that we do strongly support — the Turkmenistan-Afghanistan-Pakistan-India [TAPI] pipeline.’

The trouble with the latter is the unstable situation in Afghanistan and the fact it would take much longer to build since Pakistan’s power crisis is urgent. Despite this the Pakistani government is keen to go ahead with the TAPI project in addition to its commitments to Iran.


Hillary Clinton welcomed by Prime Minister of Pakistan Yousaf Raza Gillani at his house in 2009. Photo by America.gov under a CC Licence.

Recently the Indian cabinet gave its approval to sign a gas purchase agreement with Turkmenistan’s national oil firm. To add to the complexity of the situation, unnamed diplomatic sources in Islamabad claimed US ally Saudi Arabia also has made an offer to Pakistan to drop the gas pipeline deal with Iran in return for cheaper fuel.

But Iran has already built its side of the 2775 km pipeline, with construction still needing to be done in Pakistan. The estimated cost for this is placed at $1.5 billion. China’s largest bank and the world’s most valuable lender, the Industrial and Commercial Bank of China (ICBC), pulled out of financing the project in March after reportedly fearing sanctions from the US.

There are, however, other sources. Russian energy giant Gazprom has expressed interest in providing technical and financial assistance for the project. In this respect, Pakistan’s quest to build a gas pipeline from Iran holds the potential to turn into a bigger geopolitical showdown between the United States, China and Russia. Moscow in recent years has been silently moving closer to Islamabad.

For those familiar with politics in the region, this is a major policy shift following decades of hostility with the Soviets when the US and Pakistan were close allies. Later this year President Vladimir Putin is expected to travel to Pakistan, which would make him the first Russian President to visit the South Asian country.

Even more alarming for Washington has been Beijing’s interest in importing Iranian gas by potentially extending the pipeline project northwards to China.

US policy makers should realize that pushing Pakistan’s already weak government to reject energy dealings with Iran is not a diplomatically astute move. This is because coercion only leads to more resentment. Diplomacy, as the name suggests, should be about building relationships – not dictating to weaker countries. Just imagine the reaction if the Pakistani government were to lecture the US on its trade relations with Mexico or Canada?

Yet Secretary of State Clinton has warned the pipeline could violate sanctions against Iran.

‘It would be particularly damaging to Pakistan because their economy is already quite shaky,’ she said. ‘This additional pressure that the United States would be compelled to apply would further undermine their economic status.’

At the same time Pakistan’s Foreign Minister Hina Rabbani Khar insists her country will not give in to US pressure, and will finish the pipeline ‘at any cost.’ But some analysts believe it unlikely Islamabad will carry through with the project due to fear of incurring Washington’s ire.

The Pakistani state’s bombastic language may indeed just be a bargaining chip to use with the Americans for future foreign aid, and to appease local voters by pretending to make independent decisions.

Whatever the case, it’s clear that day by day this project is becoming bigger than just a trade venture. The complex challenges in building the gas pipeline between Pakistan and Iran demonstrate the sort of pressures countries in the Global South face in their daily struggle to be able to make their own decisions with dignity.


US tries to halt Iran-Pakistan pipeline -- New Internationalist

I think the completion of this pipeline will signify the beginning of a new order I believe America will do whatever it can to stop it. This will be a real test for Pakistan


This also shows Indians for the two faced lot they are. They were pretending to Iran and everyone the reason that they didn't want to go ahead was because of Pakistan etc. Well Tapi goes through Pakistan. Just goes to show Indians are well and truly taking US diktat
 
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must see this movie to check the early prediction in movie and long term policy for IRAN.......
:azn:

..................OIL
..................CIA
..................LIE
..............SYRIANA
..................DIE
..................WIN
..................OIL


Syriana (2005) - IMDb
 
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“There was never any real likelihood of the Iran pipeline coming through,” according to Syed Sayem Ali, senior economist (MENA & Pak) with Standard Chartered Bank in Karachi. “They’re just using it as a bargaining chip with the Americas as discussions regarding nato supplies and drone attacks near completion”. Sayem’s take will be tested shortly, as negotiations are indeed almost concluded.


“This doesn’t even suit the Russians. Tapi should interest them more, it’s in their natural area of influence. And the Chinese have a natural interest in assisting the Iran pipeline. Yet neither are happening, an indication of how complicated this particular problem has become,” Sayem adds.
ENDGAME: It would seem that even the best case scenario of the Russians agreeing, that too on our terms (still contentious), would now not see Pakistan reaching the finish line in time. The Iranians have all but built their part of the pipe, while here work has not even begun.
“It’s a non-starter,” says Sayem. “Why do you think even financial and technical feasibilities have not been sanctioned?”


Gazprom backing out of Iran-Pakistan pipeline? | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

Pakistan's energy woes does seem to be continue, Both TAPI and IP isn't taking off.
 
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its very important for Pakistan. But our puppet govt seems reluctant to build it amid US pressure.
 
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i guess time will tell if Pakistan has been able to circumvent US pressure.
 
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This also shows Indians for the two faced lot they are. They were pretending to Iran and everyone the reason that they didn't want to go ahead was because of Pakistan etc. Well Tapi goes through Pakistan. Just goes to show Indians are well and truly taking US diktat

You better be careful before you start going down that route. Iran hasn't really been all that one-faced with us either. Our relations have been business-like and out of mutual cooperation. But there have been idiotic leaders from their side commenting on Kashmir with no understanding of the issue and wrongly siding with Pakistan on religious lines. Once they demonstrate that they have brains for an independent foreign policy, India will definitely go above and beyond a business-like relation.

India might be two-faced with Iran for now, but at least it is due to pride and self-respect. We know what Pakistan's two-faced motive can be. If the US throws a few billion dollars your way and asks for bases to launch attacks in Iran, we know you guys will be first in line for the prize. Your history with Afghanistan shows this will not surprise anyone, and money can make you abandon whatever morals you have. And no, don't just blame corrupt leaders for everything - you are a democracy and your leaders are not created in vacuum. Time to stop blaming your government and take a look at your national psyche.
 
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its very important for Pakistan. But our puppet govt seems reluctant to build it amid US pressure.

I think when push come to shove they have no choice they will have to build it. There are penalty clauses in the contract if Pakistan does not build it
 
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I think when push come to shove they have no choice they will have to build it. There are penalty clauses in the contract if Pakistan does not build it

Pakistan is going to build it because they have no other alternatives. The industrialists are going to kill them if they backed off from the project. They need gas and electricity at all cost as the demand is so high that we can easily adsorb two or three such projects in the country.

I have a feeling that American's are only playing pressure tactics and has agreed under the table to allow this project to go ahead. It is very similar to Drone Strikes for Pakistan where Pakistani government keep shouting but does not raise any question in the United Nations or ICJ and American's keep showing concerns on this project but does not take any action against it.
 
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Pakistan is going to build it because they have no other alternatives. The industrialists are going to kill them if they backed off from the project. They need gas and electricity at all cost as the demand is so high that we can easily adsorb two or three such projects in the country.

I have a feeling that American's are only playing pressure tactics and has agreed under the table to allow this project to go ahead. It is very similar to Drone Strikes for Pakistan where Pakistani government keep shouting but does not raise any question in the United Nations or ICJ and American's keep showing concerns on this project but does not take any action against it.

the reason why it becomes interesting is:

In this respect, Pakistan’s quest to build a gas pipeline from Iran holds the potential to turn into a bigger geopolitical showdown between the United States, China and Russia. Moscow in recent years has been silently moving closer to Islamabad.

For those familiar with politics in the region, this is a major policy shift following decades of hostility with the Soviets when the US and Pakistan were close allies. Later this year President Vladimir Putin is expected to travel to Pakistan, which would make him the first Russian President to visit the South Asian country.

Even more alarming for Washington has been Beijing’s interest in importing Iranian gas by potentially extending the pipeline project northwards to China.

US policy makers should realize that pushing Pakistan’s already weak government to reject energy dealings with Iran is not a diplomatically astute move. This is because coercion only leads to more resentment
 
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There is enough power production capacity in Pakistan as pointed by the experts if utilized properly and gas alone will not solve anything because much of the power infrastructure in pakistan is powered by fuel oil not gas and must be converted to coal for cheaper power production.
 
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