Pakistan mulls engaging international law firm to seek US waivers for Iran gas pipeline — official

An Iranian worker stands in front of a section of a pipeline after the project was launched during a ceremony with presidents of Iran and Pakistan on March 11, 2013 in the Iranian border city of Chah Bahar. (AFP/File)
Short Url
Updated 26 March 2024
Follow

Pakistan mulls engaging international law firm to seek US waivers for Iran gas pipeline — official

  • Failed to complete project may force Pakistan to pay a daily penalty of $1 million to Iran starting from January 1, 2015 under the deal
  • Economists say the gas pipeline will help save precious foreign exchange being spent on LNG import, provide cheaper gas to consumers

ISLAMABAD: The Pakistani government is considering to engage an international law firm to explore options to seek the United States (US) sanction waivers to complete a natural gas pipeline project from neighboring Iran, a Pakistani government official said on Tuesday.

The development comes days after US Assistant Secretary of State Donald Lu told a Congressional hearing that President Joe Biden’s administration was working to prevent the Iran-Pakistan gas pipeline project, which the two countries agreed to in 2009.

However, Prime Minister Shehbaz Sharif’s government is planning to convince the US administration through “logical reasons” to secure waivers to complete the project which was essential to fulfil Pakistan’s energy needs.

“We are exploring different options at the moment to see as to how Pakistan could complete the project without facing US sanctions,” an official of the Pakistani energy ministry, who requested anonymity, told Arab News.

“One of the options is to hire an international legal firm like we did in the past to come up with a cogent plan to avoid US sanctions on the project.”

In July 2019, Pakistan hired a French law firm, Gide Loyrette Nouel, to deal with Iranian threat of moving an international court against Islamabad for its failure to execute the project and to find out a way if the project could be completed without attracting US sanctions.

Under an agreement signed between the two countries in 2009, the project was to be completed by December 2014 and would deliver 21.5 million cubic meters (760,000 million cubic feet) of gas per day to Pakistan. It was to be constructed using a segmented approach, with both countries laying down the pipeline on their respective sides of the border.

“Nothing is finalized yet as different legal and diplomatic options are on the cards to go ahead with the project,” the official said. “Definitely, we will be taking this up with the US citing some logical reasons for the project’s importance to Pakistan.”

The project is expected to boost Pakistan’s energy security and strengthen the local industry that can be assured a sustainable and enhanced gas supply. The construction of the pipeline is also expected to catalyze economic activity in Pakistan’s southwestern Balochistan province.

Syed Atif Zafar, chief economist at the Karachi-based Topline Securities brokerage firm, said Pakistan would get relatively cheaper gas as compared to the imported Liquefied natural gas (LNG), if the project was completed.

“The energy shortages would improve besides saving some foreign exchange that we are currently spending on the LNG import,” he told Arab News.

Zafar said if Pakistan failed to complete the project, it would have to pay a daily penalty of $1 million to Iran starting from January 1, 2015 under a penalty clause of the bilateral agreement.

“Pakistan cannot afford this penalty in any way, so we will have to find out a way to complete the project,” he added.

Tahir Abbas, head of research at the Arif Habib Limited securities and brokerage firm, said Pakistan’s total gas demand was around 6,000 million standard cubic feet per day (mmcfd), while the local production was just 3,300 mmcfd, and the country was importing around 1,000 mmcfd of LNG to meet its demand.

“We have been purchasing the LNG at around $12 per mmbtu and if Iran-Pakistan gas pipeline project is completed, we can get the gas at around $8 per mmbtu,” Abbas told Arab News.

“The IP project will help us save a lot of precious foreign exchange, besides supplying cheaper gas to industrial and residential consumers.”


In Peshawar, 76-year-old artist struggles to keep near-extinct Mughal wax art alive

Updated 4 sec ago
Follow

In Peshawar, 76-year-old artist struggles to keep near-extinct Mughal wax art alive

  • Craft involves intricate process using heated wax, oil, pigments, limestone to create textured, miniature artworks
  • Riaz Ahmad, who has trained his son in wax art, says he hopes to train more people to preserve traditional craft 

PESHAWAR: Riaz Ahmad, 76, stirs wax in a small plastic can with a long chopstick, takes it out on the palm of his left hand and adds natural color before drawing designs on a piece of cloth.

Surrounded by several such pieces of black cloth with unique art, Ahmad strives every passing day to keep the 500-year-old, Mughal-era wax art alive at his home near the Lahori Gate in the northwestern Pakistani city of Peshawar.

Ahmad comes from a well-known family of wax artists who were based in Shillong and Darjeeling in present-day India and had migrated to Peshawar during the 1947 partition of the sub-continent.

His work remains rooted in tradition, faithfully repeating patterns passed down through generations and winning Ahmad several awards both at home and abroad in recognition of his dedication.

“I have been making the same Mughal era designs that my forefathers used to make,” he told Arab News last week.

 

“I went to India in 2004, where I received the UNESCO Seal of Excellence [for Handicrafts] award... On 23 March, 2012, the Government of Pakistan awarded me the Tamgha-i-Imtiaz.”

The near-extinct traditional craft, which is believed to have originated in Central Asia and refined under the Mughal patronage, particularly in Peshawar, involves an intricate process using heated wax, linseed oil, powdered pigments, and limestone to create detailed, textured and often colorful miniature artworks by hand.

Ahmad learnt wax art from his father, Miran Bakhsh, nearly six decades ago.

“My parents used to do this work in Shillong and Darjeeling [in present-day India]. They had a shop there, and after the Partition, they migrated to Peshawar, Pakistan,” he said. “When they came here, they started doing the same work.”

A basic piece of his work costs around Rs3,000 ($10.7). A larger piece made on order can fetch between Rs5,000 and Rs15,000 ($17-$53), but such orders are rare.

“Wax and colors have become expensive. When I sell a piece for Rs3,000, around Rs1,000 goes into expenses, and Rs2,000 is my daily wage,” Ahmad said.

But the 76-year-old worries more about the future of the art form, which he insists cannot be learned quickly and requires “love and dedication.”

“Some people say they want to come, some from Karachi and some from Lahore, but it becomes difficult for me to go there or for them to come here,” he said.

Most wax artists in Peshawar have abandoned the art due to a lack of institutional support, according to Ahmad, who relies primarily on exhibitions to earn a living.

“The reason [for the decline of this art form] is that the government does not pay attention. They are caught in their own conflicts, and the culture is suffering,” Ahmad said.

“Other artists have left this art. Some are selling rice and some are driving rickshaws,” he added. “I have been doing this work inside my house. If there is any event, we go there and sell our art.”

Saad Bin Awais, a spokesperson for the Khyber Pakhtunkhwa Culture and Tourism Authority (KPCTA), said the government has engaged artisans in several projects. He said some of these projects have come to an end while others are ongoing.

“Riaz Ahmad is the only wax artist in Khyber Pakhtunkhwa and the authority is serious about facilitating him,” he said, adding that the KPCTA facilitates Ahmad’s participation in exhibitions across the country to showcase his art.

“We have also been collecting data of artists in Khyber Pakhtunkhwa for an upcoming project to facilitate them in any way possible.”

Ahmad has trained his son, Fayyaz, in wax art who now practices it in Islamabad. The septuagenarian says he wishes to train more people to preserve the dying art form.

“I cannot leave this work,” he said. “I will continue this art even though my hands shake.”