Pakistan risks US sanctions

Islamabad (IANS): Pakistan risks ending up on the wrong side of American sanctions on doing business with Iran, said a leading daily Tuesday. An editorial in the Dawn said that after long delays and many uncertainties, the Iran-Pakistan gas pipeline took a major step forward on Monday. "For all its potential risks and uncertainty about where the remaining $1 billion of funding will come from, the inauguration by the two countries' presidents of the construction of the Pakistan portion of the pipeline brings with it the promise - if Pakistan capitalises on it - of preventing even more damage to the economy from the country's growing gas shortage," it said. It noted that the existing supplies are so insufficient and have been so badly managed that they have severely impacted major industries, rendered consumers unable even to cook or keep warm and driven up energy prices and the circular debt by increasing reliance on furnace oil for power generation. There is the risk of ending up on the wrong side of American sanctions on doing business with Iran and Pakistan's energy problems - together with their economic, political and security implications - are severe enough to warrant that exceptions to sanctions be made in this case. The editorial went on to say that no amount of imported gas will be useful unless the country whips its energy and power infrastructure into shape.