KARACHI: A Pakistani business advocacy group on Saturday urged the government to revive the long-delayed Iran-Pakistan gas pipeline, saying the recent easing of regional tensions had created an opportunity to deepen economic cooperation with Tehran and strengthen Pakistan’s energy security.
The call comes after Pakistan helped mediate a truce between the United States and Iran earlier this month, raising hopes of improved regional stability and renewed economic engagement.
The long-delayed Iran-Pakistan gas pipeline project has remained stalled for years because of international sanctions on Tehran, financing constraints and diplomatic pressures despite Pakistan’s growing energy shortages. The Pakistan Business
Forum (PBF), an independent private-sector advocacy organization, said Islamabad should use the current diplomatic opening to revive discussions on the pipeline while expanding bilateral trade and investment with Iran.
“The future of Pakistan’s economy depends on affordable and reliable energy,” the forum’s Chief Organizer Ahmad Jawad said in a statement.
“Energy security is directly linked with industrial growth, exports, employment and investment,” he added. “If implemented within an appropriate legal and diplomatic framework, the Iran-Pakistan Gas Pipeline can become a strategic economic asset for Pakistan.”
The proposed pipeline was designed to supply up to 750 million cubic feet of natural gas per day to Pakistan, potentially easing the country’s chronic gas shortages and increasing fuel supplies for power generation and industry.
The forum said bilateral trade between Pakistan and Iran remained around $2 billion annually despite the two countries sharing a roughly 900-kilometer border, arguing that improved banking channels, border infrastructure and customs procedures could significantly increase commercial exchanges.
It also urged the two governments to establish a joint economic council with private-sector representation, operationalize additional border markets, facilitate business visas, encourage joint ventures and improve transport and logistics links.
The PBF identified agriculture, mining, tourism, renewable energy, manufacturing and digital technology as sectors with strong potential for future cooperation between the neighboring countries.
