ISLAMABAD: Despite mounting pressure from the US, Pakistan and Iran are going to enter a new era of cooperation as initiation of process for laying down 78-km pipeline from Gabd a point at Pak-Iran border to Pakistan under the much touted $7.5 billion IP gas line project is starting today (Monday).President Asif Zardari and his Iranian counterpart, amid huge presence of media persons from all over the world, will attend a ceremony at Gabd in Iran, formally starting the process.
Many questions emerge about the materialisation of this unique and mega project as the incumbent regime is going to end on March 16 and new caretaker setup will be installed to ensure general elections in 60 days.
Will the PML-N, if comes to power, complete this project as history shows that Nawaz Sharif is heavily tilted to Middle Eastern countries.
A few Middle Eastern countries and the US are opposed to the project but Pakistan also has reasons to undertake the project which will provide oxygen to the dying economy of the country.
It is also a writing on the wall that Pakistan is left with no option but to move for another IMF loan to stabilise its economy.
In the IMF, the US has much influence and it would ask the IMF to extend the bailout package to Pakistan only if it abandons the gas pipeline project. The pipeline that will be carrying the 750 million to 1 billion cubic feet gas per day will herald the prosperity as it will provide stimulus to Pakistans dying economy.
The domestic gas production that currently hovers around 4.2 billion cubic feet per day would be shifted to the industrial sector enhancing its output manifold.
The pipeline will enter from Gabd into Pakistan and then it will be connected with Pakistans national gas network system at Multan.
Pakistan is currently facing 1.5 to 2 billion cubic feet gas per day deficit, resulting into the worst of energy crises and inflicting a loss of two-three percent of GDP.
With the utility of 750 mmcfd gas in the power sector, about 4000 MW of cheaper electricity would be produced and when the gas flows would later on be increased to 1 bcfd, 5000 MW electricity would be produced.
Dr Asim Hussain, advisor to the PM on petroleum and natural resources, told The News the cost of laying down the Pak-Iranian gas pipeline has come down to $1.3 billion from $1.5 billion.
He said that the commissioning date of the project will now be dependent on the completion of the project and if it gets delayed Pakistan will not be exposed to any penalty, as was earlier mentioned in the gas sales purchase agreement (GSPA).
By The News International
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