IP pipeline... By Col.(r) Nazir
07 February, 2013
The cabinet has reportedly approved the Iran-Pakistan gas pipeline deal and fixed the price of gas at $13 per unit. Currently, the gas-distribution companies are charging their consumers $3.50 per unit. The enormous difference in gas prices will cause great damage to Pakistan's economy, further reduce whatever is left of our industrial production and intensify the problems of the common man. Even development of more domestic gas fields in the future will not lessen the crippling burden caused by the exorbitant gas prices. It seems that the representatives of the global oil cartel have ensured that Pakistan does not further develop its domestic gas fields which could reduce our oil imports. The use of CNG in the transport sector has been effectively scuttled for the same reason.
The terms of the independent power projects' contracts, approved about two decades ago, have taken the electricity charges to unaffordable levels and continue to have a devastating effect on our economy. A similar situation can arise if the gas price being fixed is implemented. The political parties in the opposition, the civil society and the media must strongly oppose this deal and pressure the government to bring the gas price closer to the existing domestic gas price.
Colonel (r) Nazir Ahmed