Abstract:
Iran Pakistan Gas Pipeline has been long-delayed project, initiated to meet Pakistan’s natural
gas demand and over all a pipeline for peace and prosperity for both the
completed its part of the pipeline, however Pakistan
countries. Iran
never moved a single stone citing
American pressure and possible threat ofsanctions. Thus, in order to fulfill gas requirements,
Pakistan opted to procure expensive LNG (Liquified Natural Gas) that substantially increased
Pakistan s import bills, eroded forex reserves, increased domestic circular debt and raised the
urge to seek more debt over the years. This study focuses on analyzing the consequences of
foregoing IP Gas Pipeline and Pakistan’s increasing dependence on LNG. Moreover, this study
critically analyzes the claims put forward by some officials and analysts regarding U.S..
sanctions on IP Gas Pipeline project. Moreover, the economic viability and potential of Iran
Pakistan Gas Pipeline helping Pakistan get out of vicious circle ofDebt are also discussed.
The research design opted in this study is qualitative grounded theory with an inductive
approach having explanatory research type. The data has been gathered through observations,
archival review/ documental study, case studies and qualitative audit reports from various
sources including governmental and non-governmental agencies, independent research
institutions, press statements ofkey stakeholders and media reports.
The findings conclude that LNG is an expensive resource and is going to be further expensive
due to rise in demand by the European Countries. The LNG procured has proved to be
detrimental for Pakistan’s economy, in terms ofinflating circular debt and erosion offoreign
currency reserves. Hence, the country stands at the brink of default. The research further
explains that Iran Pakistan Gas Pipeline not only saves multiple billion dollars but would also
help eliminating the problem of circular debt and could make Pakistan more self-reliant
economically & sovereign geo-politically.
