IRANI PETROL & GAS FOR PAKISTAN ? AFTER CHINA SUPPORTED RECONCILIATION WITH SAUDIA?

Saudi Arabia Iran reconciliation and restoration of diplomatic relations thanks to the efforts of China is no doubt game changer not only for the Middle East but for almost whole Asian continent and particularly for Pakistan as well. For Pakistan this reconciliation means a lot in a sense that it will help build communication, trade and energy corridors from Pakistan to Turkiya and Eurasian Region giving a remarkable boost to the economies of all countries that will enhance the well being of the people of the regions.

Pakistan has always been active supporter and facilitator of Saudia Iran normalization of relations as it is in the vast interest of the Middle East and Pakistan. Iran and Pakistan have common borders where both countries have been facing the security threats. Pakistan is the homeland of the people of both faiths that Saudia and Iran follow. This character should have helped Pakistan to enjoy close strategic and economic partnership with both countries but unfortunately this commonality of faiths mostly affected the law and order in Pakistan due to unsolvable differences between both faiths Sunni and Shia.

The reconciliation will not only help minimize the confrontations in Middle East but will pave the way for two faiths in Pakistan to start living in harmony like their two representative countries have built an understanding that disputes and tussles have brought nothing than destruction and irreparable damage to these countries and the regions.

Pakistanis are not allowed to import oil and gas from Iran. Mostly it is smuggled and sold out on heavy price in Pakistan. We import oil mainly from Saudi Arabia only that needs Dollars and Pakistan does not have Dollars. Petroleum import bill is rising and Dollar stocks are decreasing. More petroleum less Dollars phenomenon is detrimental for the economy of Pakistan. Iran offers cheapest petrol and gas but Pakistan can not avail this opportunity because of apparently two reasons.

1- Sanctions on Iran 2- Relations with Saudi Arabia

As long as sanctions are concerned, Pakistan can take a stand that oil and gas are humanitarian needs and Pakistan’s Dollar reserves does not allow to import petrol of more than 10 Billion Dollars. Now when Saudia is normalizing relations with Iran, Pakistan should not have any fear of displeasure of Saudia and Saudia should understand that Pakistan can not buy costly petroleum and that in Dollars.Pakistan also looks forward to the construction of Saudi Oil Refineries with 10 Billion Dollars investment as announced by the Crown Prince in Gwadar.

Pakistan already signed agreement of supply of 200 MW electricity from Iran. This indicates that Pakistan can import petrol and gas as well. Pakistanis are anxiously looking forward to an agreement of oil and gas between Pakistan and Iran. The petroleum prices have broken the back bone of the Pakistanis. Inflation is out of control.

The increasing demand and less supply of Dollars have made Dollar equal to Gold that have affected the prices of most of every day commodities in Pakistan. Irani petrol and gas can help government save the foreign currency that will ultimately decrease the prices of dollar and petrol both.

This is the only way for Pakistan to survive and save the poorest of this country from committing suicides. Therefore Saudia Iran Reconciliation means a lot for Pakistanis if it helps in above mentioned matters.

Tazeen Akhtar
Editor