Pakistani oil diplomacy at a crossroads

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The Indian cabinet decision on February 9 authorizing the Petroleum Ministry to commence negotiations over the US$4 billion Iran-Pakistan-India gas pipeline project poses a dilemma for Islamabad that goes beyond the issues of energy security or trade ties with India. A Hobson’s choice faces Islamabad: it has to balance public opinion on cooperation involving Iran and India with Washington’s approval of the project.

Indian Petroleum Minister Mani Shankar Aiyar said while announcing the government decision in New Delhi, “The ball is very firmly in Pakistan’s court. It is now for them to respond to my letter of October [2004] which said that we hold a ‘conversation without commitment’ on cooperation in the hydrocarbon sector and the Iran-India gas pipeline through Pakistan.”

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