Iran-Pakistan Pipeline and the Balochistan Conundrum

Analysis

By Harsh Pargat

In June 2009 Iran and Pakistan signed a Gas Sales and Purchase Agreement. The agreement signed focused on building a pipeline between these two countries. Through this project, it is supposed that Pakistan will get a gas supply of 750 million to 1000 million cubic feet daily. The pipeline construction started and Iran stated that it had completed its side of the pipeline. The project is delayed because Pakistan has failed to complete its pipeline from its end.

Background of the Pipeline:

When the two nations inked a preliminary agreement in 1995, the IP gas pipeline was originally agreed upon. Gas from the South Paras gas field in Iran is to be transported to Sindh (Gwadar and Nawabshah) in Pakistan via this project. In 1999, India was invited to join, forming the Iran-Pakistan-India (IPI) pipeline, which was intended to reach New Delhi. India removed itself from this initiative in 2009 after making very little progress. The US sanctions along with terrorism supported by Pakistan had played a role in India withdrawing from the project.

Fig.1. Pipeline between Iran & Pakistan. Source: Research Gate

Project Commencement and Challenges

Iran and Pakistan had agreed to finish building their respective pipelines by 2014. However, Pakistan failed even to begin construction, while Iran finished its project in 2011. Pakistan does not have the necessary financial resources. Iran was prepared to lend Pakistan $500 million. Pakistan was under intense pressure to begin building right away. Pakistan was well aware that taking out the debt would result in a daily penalty of one million dollars. Pakistan finally began construction in March of 2013.

Pipeline: A Matter of Pride and Projection:

 Despite   six resolutions passed by the UN Security Council. Over the years imposed different sanctions on Iran. it had managed to build 900 km of the total 1100 km and by October 2023, all of the restrictions had been withdrawn now.

To avoid economic sanctions, Pakistan was advised by the United States to abandon the IP pipeline project in 2013. Rather, the US proposed the construction of an LNG terminal, which Washington was willing to assist in financing. Other projects have also been proposed by the US but Islamabad continued its support for the construction of pipeline.

In present scenario Pakistan is facing a serious economic crisis. It depends upon the International Monetary Fund for money. Knowing this fact Pakistan stated that it was next to impossible to start on the construction work for the pipeline. In such scenario Pakistan is trying to get financial assistance from Saudi Arabia and Qatar. Both these countries have their differences with Iran and so they helped Pakistan to survive its economic crisis triggered by multiple factors like the inability to pay debt along with low foreign exchange reserves.

Since Iran never paid attention to the US, EU, or UN, the pipeline became a source of pride for the country. Iran wants the US to know that it will not give up in the face of outside pressure by building this pipeline.

The Ignored Balochistan Angle in the Pipeline

The Balochistan factor is being suppressed when it comes to the “Peace Pipeline”. It is being neglected. Arhama Siddiquia in her paper had written  that the pipeline will help in the progression of Baluchistan and Sindh. Also, she had highlighted the withdrawal of India in 2009.

However, the author did not highlight the angle of terrorism which was the reason for India pulling out. With the 26/11 attacks not touched upon. In addition, the author fails to see the amount of human rights violations that Pakistan is doing in the façade of protecting the safety of the pipeline. As per the Baluchistan Liberation Army And other organizations Baluchistan Liberation Front were impacted by the air strikes that Iran and Pakistan had carried out against each other earlier this year in January. If we consider the cross-strike actions the pipeline seems to be heading nowhere. The Balouch people have suffered in the garb of being labelled terrorists. Their rights are being curbed in the name of progress.

Conclusion

 Pakistan has to hasten its development if the project has to meet the development. It faces the prospect of being penalized 1 million US dollars per day. From Iran’s side they have invested 2 billion and built 559,234 miles approximately 900 km of the total estimated 1724 miles approximately 27775 km.  Pakistan has led to the project being halted and as Pakistan faces the challenge of external factor. This can escalate tensions between the bilateral relations of Iran and Pakistan. Despite the  attempt of Pakistan's Foreign Minister Ishaq Dar to reassure   that Pakistan will not surrender to any external pressure.

Disclaimer: This paper is the author's individual scholastic contribution and does not necessarily reflect the organization's viewpoint.

Harsh Pargat completed his masters degree in International Relations and Security Studies with Language Specialization from Rashtriya Raksha University. His area of Interest is Geopolitics of West-Asia, South Asia and International Political Economy. Besides academica he is a professional Chess Player and a State Level Chess Coach and interested in social work.