Pak-Iran cooperation in energy sector imperative for bilateral ties: diplomat

Ex-ambassador of Pakistan to Iran says future of Iran-Pakistan energy ties are very bright as the Islamic Republic with its surplus energy resources can help Pakistan overcome its energy woes in a most feasible manner.

In an exclusive interview Asif Ali Khan Durrani said Pakistan along with completing Iran-Pakistan (IP) gas pipeline project should also purchase electricity from neighboring Iran.
“With Iran we have permanent relations and we have a proud history of having strong relationship, both the countries have always stood by each other,” he said.
He said Iran and Pakistan have been together not only on bilateral issues, but they have been together on regional and international issue and there has been close coordination between the two countries.
“So I can say that irrespective of governments in Pakistan and Iran, we have historical relationship, we have commonality in religion, culture and language, I can say with confidence that relationship has flourished to a satisfactory level and we can expand it further and in this regards sky is the limit,” the analyst said.
*** No hurdle in expansion of ties with Iran
He was of the view that there is no hurdle in expansion of ties with Iran and our foreign policy is not changed with the change of the government in Pakistan. “Especially in neighborhood when you have history of relationship with Iran, I don’t think there is going to be any change in our ties with Iran,” he said.
“Yes there will be a change for positive purposes which I can anticipate,” he said. Asif Durrani went on to say there is no reason that even in difficult circumstances both Iran and Pakistan would not stand by each other.
***Iran-Pak cooperation in energy sector imperative for bilateral ties
The former diplomat added, ‘There have been pressures on Iran-Pakistan (IP) gas pipeline project, even when we were negotiating and the agreement was not signed, there was the American pressure but despite that pressure we signed it in Chabahar and I myself went to Chabahar and I was present in the ceremony.’
“I am positive that it is taking a while but ultimately we will have Iranian gas here,” he said. The analyst said the IP is a very doable option, very practical option, and not only gas but purchasing electricity from Iran is a very feasible option for Pakistan.
He said Iran has surplus electricity and the country is also ready to give 3500 MW to Pakistan so this should be negotiated. “I am sure the new government would also look into that,” he said.
He added Iran and Pakistan should have greater trade and give preference to each other as trade is a big source of prosperity.
***Good ground available for Iran-Pakistan currency swap agreement
Asif Durrani expressing his views said that Pakistani banks are not ready to do business with Iran right now and the reason being is they are scared. He added that Pakistani banks are scared because all of their business is in dollars so if they do business with Iran even through currency swap they might land into difficulty.
“This is unfortunate; I think there is a good ground for both the countries to have a firm currency swap agreement, I am an ardent supporter of currency swap, now this is being done between Pakistan and China and if it can work there it can work with Iran also,” he said.
He said that currency swap agreement is possible between Iran and Pakistan; there is a currency swap between Iran and Russia, Iran and China so why not with Pakistan.
The former ambassador said that lack of banking channel is the main hurdle in economic ties of Iran and Pakistan and if they enter into currency swap, the trade between the two countries can be increased.
“The trade between Iran and China is close to $30 billion so Pakistan should also enter into a currency agreement with Iran to boost trade,” he noted.
***US sanctions against Iran, unfair
The former ambassador added that sanctions against Iran have never worked whether imposed in 1996 or renewal of these sanctions by Trump administration after withdrawing from the Joint Comprehensive Plan of Action (JCPOA).
“I have very clearly said that American sanctions are unjust and American administration is setting a very dangerous precedent by withdrawing from an international agreement which has the endorsement of UN Security Council so tomorrow countries would be skeptical to enter into any agreement under the international umbrella,” viewed the expert.