Iran gas pipeline as ‘economic death sentence’

Source: Dawn Com.

SLAMABAD: Pakistan’s plan to import natural gas by pipeline from neighboring Iran would be an economic ”death sentence” for the country because the gas price is too high, a Pakistani advocacy group said in a report released Wednesday.

Despite US pressure, the Pakistani government struck a deal with Iran to import gas in the hope of relieving the country’s energy crisis, especially the shortage of electricity.

Gas is used to fire many of Pakistan’s power plants, but insufficient quantities mean rolling blackouts are common.

The Islamabad-based Sustainable Development Policy Institute (SDPI) said in its report that the contract with Iran means the gas sold to Pakistan likely will be several times more expensive than the domestic gas currently used.

“This is a death sentence for Pakistan’s economy,” the report said. It criticised Pakistani officials who “blatantly ignored the energy dynamics and its pricing while going for this deal.”

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Categories: Asia

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