The benefits of Iran-Pakistan gas pipeline project.

• Author: Kazmi, S. Kamal Hayder

Byline: S. Kamal Hayder Kazmi

The research studies revealed that over the last four decades worldwide economy has experienced various wide swings in energy prices. These swings have very grave repercussions for countries of Asia, in general, and South Asian regions, in particular the latter having tremendous economic potential. The experts identified that rapidly growing economies like India, China and Pakistan will face grave energy crisis if they do not plan well for future needs. Statistics showed that the energy crisis in Pakistan has also gravely aggravated affecting the economy and growth besides paralyzing the routine life.

Consequently, the Government of Pakistan is in dire need to address its energy issues. Given its geopolitical disposition with energy rich Central Asian Region (CAR's) and Iran in its neighborhood, the Government of Pakistan has a chance to come out of the crisis in time. Nevertheless, plans like the Iran-Pakistan gas pipeline project, thus exists with extreme essentiality with no apparent alternatives in the foreseeable future.

Concurrently, where Iran is in a state of confrontation with US because of the controversy of its nuclear program, it faces various issues and US led sanctions. The US in order to isolate Iran has also been forcing international community to follow the same pattern. In this pursuit, it also managed to convince India to abandon the very project and has been pressurizing Pakistan to look for other alternative; despite the fact that the project has immense significance for the region.

Presently, the Inter State Gas Systems (Private) Limited (ISGS) and the National Iranian Gas Company (NIGC) inked a revised agreement for the much-delayed Iran-Pakistan (IP) gas pipeline project. Sources recorded that as per the revised contract, the Government of Pakistan will no longer have to pay fine to Iran and Iran will not go to an arbitration court for delay in IP pipeline construction. It is also recorded that the two states will work together to find a viable solution to the project. Furthermore, Pakistan can build the IP pipeline till the year 2024 for buying 750 million cubic feet of natural gas per day (MMCFD) from Iran.

International experts identified that Iran's economic freedom score is 51.1, making its economy the 155th freest in the 2019 Index. Its overall score has increased by 0.2 point, with higher scores for judicial effectiveness and investment freedom exceeding declines in labor freedom...