Infamously controversial Iranian President Mahmoud Ahmadinejad paid a brief visit to Pakistan today, where he met with President Pervez Musharraf and Prime Minister Yousaf Raza Gilani in Islamabad during his four-hour stay. According to the Associated Press, “[The] Iranian and Pakistani leaders resolved issues related to a multibillion-dollar [$7.5 billion] gas pipeline project opposed by the United States during the Iranian president’s brief visit Monday to Pakistan…” The 2,600 km pipeline to India is expected “to earn Pakistan millions of dollars in transit fees,” reported BBC News today. The news agency cited the Associated Press of Pakistan (APP), which reported that Iran also agreed to supply Pakistan with 1100 MW of electricity, an announcement that is significant in light of Pakistan’s recent power crisis, [see previous post on power riots in Multan].
Later on Monday, Ahmadinejad traveled to Sri Lanka, and will follow with another high-profile visit to India on Tuesday. Iran’s South Asia tour was described by the Christian Science Monitor as an “outreach strategy” aimed at both “making energy deals and curbing Western influence.” Although media outlets today emphasized the Pakistan leg of the tour, the Monitor noted Iran’s biggest challenge on the trip to counter U.S. influence and “rekindle diplomatic relations” would be with India.
M.J. Gohel, a security analyst and director of the Asia-Pacific Foundation in London, noted, “India is very short on energy, so there are economic reasons for India to maintain a working relationship with Iran…However India’s long-term and strategic relationship is definitely with Washington, and I think that has been made very, very clear.” Nevertheless, India does have a stake in the aforementioned gas pipeline, “which is meant to deliver 30 million cubic meters of Iranian gas daily each to Pakistan and India,” reported the Monitor. BBC News added,
The gas pipeline is seen as crucial for India which relies heavily on fuel imports for its fast-growing economy…Analysts say that the pipeline could also contribute to security as Iran, Pakistan and India benefit more by mutual co-operation.
Ultimately, Ahmadinejad’s visit holds deeper ramifications for the United States, who feels the pipeline deal will weaken its efforts to isolate Tehran. The Christian Science Monitor noted in its piece today, “Washington opposes the pipeline because of what it brings to Iran, despite benefits also for U.S. allies India and Pakistan.” CNN reported Monday that Washington has put both New Delhi and Islamabad under pressure not to sign any agreement with Iran, despite the economic and security benefits of the oft-labeled “peace pipeline.” In fact, the United States recently tried to “scuttle” the pipeline by reportedly offering India advanced nuclear technology to make up for the loss of Iranian gas. Nevertheless, CNN cited Iran’s “semi-official” news agency, Fars, which reported that India “recently declared its readiness to participate in the discussions on the pipeline after more than a year.” If this development has taught us anything, it’s that international deals, despite their security and economic benefits, can hold much larger geostrategic ramifications and dangers, causing its progress to therefore come to a standstill. [Image from Christian Science Monitor]
Ahmadinejad’s visit to Pakistan and India (he’s also visiting Sri Lanka to inauguarate some JV projects) is crucial for the finalization of the IPI (Iran-Pakistan-India) gas pipeline. Those who have been following the developments in this regard must be knowing that India began to withdrew itself from the project, partly under stick and carrot policy by the US (US is not supportive of the project for its growing animosity against Iran and offered India help in establishing a civil nuclear energy program in return of its withdrawal from the project). However, recent talk of bringing in China (i.e. redirecting the pipeline to China instead of India) caused India to rethink its priorities. As one of the fastest growing economy, India needs to meet its energy demands as soon as possible in order to avoid any brakes in its current economic growth. It now is very much a part of the discussions and talks which have apparently been concluded and apparently a final agreement between Iran and Pakistan has been signed; India needs to hammer out some last sticking points including the price and the transition fee before it also legally commits itself to the project.
We all look forward to a successful implementation of this pipeline not because it carries economic gains for everyone involved but primarily because it can mark the beginning of a new era of regional interdependence, economic cooperation and friendly interaction in all matters that is desperately needed in our tension-ridden and war-ravaged part of the world.
For those who might be interested in reading more about the specifics of this and another proposed gas pipeline project with the pipeline originating in Turkmenistan and passing through Afghanistan and Pakistan reaches out to India and also China in the future, readers may want to read my recent article on the topic here: http://www.americanchronicle.com/articles/59469.
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