Electricity, Gas, Petrol – Everything on Border of Iran – What are the Hurdles for Pakistan?

Despite all backbone breaking sanctions, Iran has survived and secured a prominent position in the comity of nations. Pakistan is a sandwich between two BRICS countries , India and Iran. This is what we have achieved when China , our time tested friend was also with us, EU granted us special status of GSP while USA was also always around to contribute to our needs in shape of finance or human assistance. Pakistani exports are not crossing the average range of $25 Billion while Iran is exporting $50 Billion worth products annually with no trade deficit.

Earlier than China, it was Pakistan to mediate between Iran and KSA. The first move of Pakistan in this connection was successful but later Pakistan itself succumbed to its own political crisis. This was extremely disappointing situation not only for the people of Pakistan but for many friendly countries around including Central Asian Republics that had hopes of connectivity building with Pakistan as soon as possible.

15 Years ago, Ambassador Masha Allah Shakiri shared that the pipeline and electricity line are complete on our side. Pakistan can build infrastructure on her side to import fuel gas, petrol and electricity. After these long years, now, the status is the same. No development on Pakistani side. We are importing only 200 MW electricity of which 100 MW had been added only few months ago from Iran. This electricity helps us lit Gawader and some other parts of Balochistan.

Pakistan Iran Sign Agreements to take Bilateral Trade up to $5 Billion – Set up Free Trade Region , Opening 5 Markets on Common Border

Pakistan is facing public unrest rather mutiny against the unjustified prices of electricity, fuel gas and petroleum. Pakistan needs these products for economic survival as well as for political stability in the country. Unfortunately , delay is also from Pakistani side. Irani companies working on the supply are waiting for years. Had it with some other country, Pakistan would have to pay huge penalties for not completing the work at Pakistan’s part. Iran as brotherly country does not have any such intention. Iran will not go to any forum whatsoever, especially in the west against Pakistan.

Iran completed the pipeline in 2009 up to the border but Pakistan could not connect it from this side in last 14 years. The reason is USA sanctions or KSA displeasure? Now when KSA and Iran are at reconciliation mode, the only hurdle is US sanctions. But as long as, human necessities are concerned, sanctions do not affect their supply. One can also see the export of Russian oil to Pakistan. It means USA is not hurdle in Iran case and the reason is something else. The government of Shahbaz Sharif moved forward to some extent but still Pakistan has to go a long way to reciprocate the arrangements of Iran to supply what we need badly.

Iran is fulfilling 1/4th LPG needs of Pakistan but it is through informal trade. This informal trade is another interesting phenomenon between the two countries. Irani Petrol is available in Balochistan in less than 100 PKR whereas it is 290 PKR in rest of Pakistan. The volume of informal trade is 4 to 5 Billion Dollars according to confirmed and reliable sources. Both governments recently agreed to take the volume to the target of $5 Billion during last days of Shahbaz Sharif when Irani Foreign Minister visited Pakistan for the first time. A big delegation of businessmen and officials from oil, gas, electricity sectors also accompanied Irani FM to Pakistan.

Iran is keen to accomplish the projects mainly consisting of energy as soon as possible. Iran is ready to supply as much energy as is required even for the CPEC as well. This can bring economic development in Pakistan. But at the same time does not want Pakistan to be pressurized or persecuted by the West or USA. Iran knows energy supply is in the interest of Pakistani people. Therefore Iran will continue the supply even it is through informal ways.

H.E Mohammad Ali Hosseini: Iran Ready to Supply Gas & Electricity to Pakistan – Flights Should be Increased – Important Energy Project will be Accomplished Soon

Irani company has completed an electricity project in Gawader. Its officials had a meeting with Pakistani side few days ago. If Pakistan gives them guarantees on their investments, the company can proceed with the work that is due on the projects. Iran has come half way, now Pakistan has to move ahead the rest half.

There is no direct flight between the capitals of two neighboring countries with total population of more than 300 Million. There are direct flights from Karachi and Lahore to Mash,had and Tehran. Both countries are working upon flights between the capitals. Iran FM brought Civil Aviation officials as well. Pakistan also considers it necessary. The cabinet of Pakistan may soon give the approval. Irani air lines are interested to start the direct flight operation between Tehran and Islamabad.

Iran can send shipments to a country on the other corner of the world, that is Venezuela. Neither the distance poses any danger nor the US sanctions make any hurdle although in this case both countries are anti-US. But in Pakistan’s case, only a few kilometers at the border are the hardest to cross when one country in the trade is near to USA. Iran is ready to include Pakistan in its exports of more than $50 Billion but the question is Pakistan is prepared or not?

Iran Pakistan centuries old relations but no banking channel for trade is available between two countries that are opening entry points and border markets.Here again the informal ways are the option for traders. Absence of financial exchange has been discussed and sooner a strategy in this regard is expected to be prepared.

For more connectivity, Iran offers transit to Turkiye and use of North South Corridor. As long as Pakistan Iran Turkiye route is concerned, the trilateral agreement exists since 60s in shape of Regional Cooperation for Development. RCD was reshaped in late 90s to include newly independent Central Asian States. North South Corridor connects the CARs to Persian Gulf and Arabian Sea like Pakistan offers CARs access to sea through Gawader.

A remarkable development in Iran Pakistan relations is trust on defense, security and peace on both sides of the countries especially on bordering areas. Pakistani Army Chief’s visit to Tehran and meetings with defense and security officials was the culmination in this regard. Irani officials found General Asim Munir as a strong and solid person. The agencies related to the security of their states are in continuous contact with each other.