Ahmadinejad’s visit to Pakistan
Fozia Shahnaz Niazi
Iranian President Mahmood Ahmadinejad had made a very important and
brief visit to Pakistan to meet the neighbouring country’s new
government. The Iranian President met with President Pervez Musharraf
and Prime Minister Yousuf Raza Gilani and discussed matters of bilateral
interest, including political and economic relations enhancing economic,
trade and commercial links for the mutual benefit of the two countries
on the basis of historical, religious and cultural affinities between
the two.
Ahmadinejad discussed security issues in the surrounding region,
including worsening conditions in Afghanistan because it is very
critical for both Iran and Pakistan. There is danger of the war spilling
over to Pakistan and Iran as its consequences. Both viewed that peace
and security in Afghanistan was not only important for Pakistan and Iran
but for the progress of the entire region. They emphasized the need for
more dialogue and an enabling environment to counter terrorism more
effectively. It was agreed that the mechanisms of Joint Investment
Company (JIC) and Preferential Trade Agreement (PTA) would be
established. The target of US $ 1 billion for trade between Pakistan and
Iran JIC and PTA should be fully utilized. Thirdly Iran also agreed to
help assist Pakistan by providing 1100 MW of electricity to Pakistan. It
would help Pakistan to overcome the shortage of electricity,
particularly in areas adjoining Iran. Through this Pakistan will meet
the future challenges of energy demand.
Fourthly both the leaders emphasized to sign the IPI gas pipeline
Agreement which will add new dynamics to strengthen cooperation between
these two. It was also agreed that Foreign Ministers of the two
countries would meet soon to discuss and fix dates for its signing.
Although Pakistan and Iran have finalized the draft of Gas Sales
Purchase Agreement (GSPA) on IPI gas pipeline deal that is ready to be
signed between the two countries. The gas pipeline project is important
for both India and Pakistan. Pakistan is earn to earn millions of
dollars in transit fees from the 2,600-km pipeline. The gas pipeline is
seen as important for India which relies heavily on fuel imports for its
fast growing economy. It is expected that India’s energy demands both in
oil and gas would be doubled by 2020 as the country’s economy grows
rapidly. So the Indian and Pakistani economy will not be able to
flourish for a long time if the issue of energy deficiency is not
resolved. Present record of oil prices in recent days destabilizes both
countries’ economy. The gas pipeline project will promote peace and
friendship; it could also contribute to the security and economic
prosperity and political stability of the whole region. Iran also gave a
positive response about the Pakistani proposal for allowing a gas
pipeline through its territory to provide gas to China, along the
historic Karakoram Highway, to help it meet its growing industrial
needs.
Iranian gas reserves are thought to be the second largest in the world
(after Russia’s) which could contribute towards generating foreign
revenues. In the past US has opposed the pipeline project of about U.S $
7.5 because it would generate fresh revenues and the flow of new
technology and foreign capital to the Islamic country to the Iranian
economy which has been under US sanctions as well as under UN economic
sanctions due to Iranian developments of its nuclear programme. United
States feels it would weaken its efforts to isolate Iran from all over
the world. So instead of basing animosity between Pakistan, Iran and
India, pipeline project will be a positive step towards strengthening
economic ties which leads to prosperity of these countries, things will
definitely change with the passage of time.
Pakistan must make the best efforts to have economic relations with
Central Asian States and Russia because these countries are very rich in
energy resources. Pakistan must have pipeline agreements with these
countries to India. As Turkmenistan, Uzbekistan and Russia have also
signed an agreement about the gas project and China is also importing
gas from Turkmenistan. So in this way Pakistan can fully utilize its
transit route and gain more benefits from these types of developments.
Close and cordial relations through economic integration in these
countries have abiding interest in each other’s stability, progress and
prosperity.
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