The crucial Iran-Pakistan pipeline project envisaging import of 750 million cubic feet of natural gas continues to be delayed on one pretext or the other. While everyone was expecting the project to be completed by December, 2014, the ministry of petroleum and natural resources revealed on 28th May, 2013 that it was again delayed due to political transition in the country and some of the important approvals for initiating the construction work could not be obtained during the tenure of the caretaker government.
On the other hand, Iran had completed about 900-km pipeline from the gas field to Iranshehr out of a total of 1,150-km inside its territory and the work on the remaining part was in progress. Construction work on Pakistani side could also not take off because engineering, procurement and construction firms required sovereign guarantees for mobilisation of machinery and workforce which were also delayed. However, Pakistani companies had been short-listed to take the construction work in hand under the supervision of Tadbir Energy, the EPC contractor.
How the news of the delay in the I-P gas project will be received and responded by the people and the industry is not difficult to tell. As of now, many people in different parts of the country are protesting against loadshedding up to 18 hours a day but were expecting some relief after the completion of pipeline. Growing power shortages have not only crippled daily life, they are also disrupting industrial production and causing an economic loss in excess of 4 percent of GDP a year. While the misery to the people and losses to the economy are obvious, the reasons given for the delay are not very convincing nor a new deadline has been specified for the completion of the project.
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