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Publication » Brief Analysis » Pakistan's energy problem may be resolved by Iran
 

Pakistan's energy problem may be resolved by Iran

 

Mihaela PĂDUREANU

 

April 21, 2010

 

The Iranian Foreign Minister, Manouchehr Mottaki declared that Iran would be pleased to resolve Pakistan's energy crisis. For this, Pakistan is willing to send a high-powered energy delegation to Pakistan. Pakistan and Iran finalized an agreement on piping Iranian gas on Pakistan. M.B. Abbasi, Pakistan's envoy to Teheran, added that nothing can damage the historical relations between Pakistan and Iran (Associated Press of Pakistan).
 
 
Pakistan's energy problem is going to surface once again during the summer. Only 60% of households have electricity and 18% of households have access to pipeline gas for heating. It is expected that the demand for energy will increase with 250% for the next 20 years. Pakistan has begun to resolve the problem of missing resources asking Iran to get involved. In May 2009 the two countries signed a deal worth 7.5 billion dollars through which Iran was going to supply Pakistan with oil. This link will bring benefits to both of them. First of all Iran will extend its influence. How much of this will transform in political decisions is about to be seen. The second advantage is that Pakistan manages to have a friendly relation with Iran while receiving money from the US. Although US` s first reaction was that it may not support such a link, Pakistan did not withdraw from the plan. US might try to use the cooperation between the both countries as a tool for bringing Iran in the international community by expanding its commitments. The gas pipeline was supposed to include India too - by this making the pipeline a link between the countries in South Asia. Through this pipeline the relationship between India and Pakistan is supposed to be improved too.
 
 
Iran has made an offer to solve Pakistan's issue. In December 2008 the two countries signed a Memorandum of Understanding. Signed at Pakistan's request, the Memorandum allowed Iran to provide 1.135 MW with the possibility to double the export. But Iran's willingness has faced a circumspect Pakistan for a year and a half. Although other countries were interested in Iran's resources, it chose Pakistan. Now it seems that Pakistan is more opened to Iran's offer. The Agreement and the Operational Accord signed in Istanbul on March 17 prove this.
 
 
Given the energy problem and Iran's proposal, the extremist groups from Pakistan tried to use these facts to blame the West for government's hesitation. If Pakistan reacted to US pressures then its sovereignty could be put into question. The official explanation for this delayed action is that there is no money. The absence of infrastructure was included here too. But Iran has come with a counteroffer to this and declared that the cooperation could include even financial assistance. So it seemed that nothing stand against the cooperation between the two countries.
 
 
The Pakistan government does need money for technical assistance for a long-term energy plan. These could be American money. The 3.5 billion dollars Kerry-Lugar plan for Pakistan has been motivated by the need to prove US`s commitment to Pakistan. The aid package is supposed to be used for `high-visibility infrastructure programmes'. But will the Iranian-Pakistan ties be supported by US`s money? The pipeline is going to extend from the Persian Gulf going through Baluchistan and ending in north India. This will make millions of people dependent on Iran's gas. India may find alternatives for this. It has a good relation with Russia so it may get gas from there. But Pakistan needs to find a way to resolve the energy problem it has and Iran is supposed to be included in a network. The American money may come under some very hard conditions and after some methods of control have been developed.
 
 
Another solution to the problem of energy in South Asia is TAPI (Turkmenistan-Afghanistan-Pakistan-India) project. But this project needs a stable Afghanistan. And a stable Afghanistan is not available yet. That is why Pakistan seems to depend on Iran for solving its energy problem. Will Iran's influence be increased by this agreement? For certain. But will the US be affected by this? Iran's power might be increased and it might bring a major role in the South Asia for them. But on the other hand might help to ensure cooperation between Iran and the international community. Maybe this time trade and interdependence will be tools which will help maintain peace on the region.