Energy Sector - 2

[Naresh]

<b>Pipeline not to draw sanctions, hints Rice</b>

WASHINGTON, June 17: US Secretary of State Condoleezza Rice has indicated that the United States would not use the threat of sanctions to make India and Pakistan abandon the Iranian gas pipeline.

Asked at a Thursday afternoon briefing whether the US was going to use sanctions if India and Pakistan continued to work on the pipeline project, Ms Rice said: “Well, I think we are sharing our concerns in a constructive way with them, not in a negative way.”

The United States, she said, recognized that energy was a cause of concern to the countries in that region and “the energy situation” was one of the issues that Washington was “going to have to have continuing discussions about.”

Ms Rice also hinted at helping South Asian nations develop alternative sources of energy to meet their energy requirements. “These are growing economies, particularly the Indian economy, which has to find energy supply. And that’s why we have an energy dialogue with the Indians so that we can help to talk about different forms of energy supply,” she said.

In March, the Bush administration offered to help India build nuclear power plants as an alternative source of energy and since then both sides have held several rounds of talks to implement this proposal.

Ms Rice said the US fully understands that the Indians need to find energy sources to meet their needs but also has made its “concerns known about this specific circumstance,” which includes the construction of a gas pipeline from Iran.

The restriction could seriously hurt Pakistan, which receives more than $700 million a year from the United States in economic and military assistance. Currently, Pakistan is also engaged in a dialogue with the US for buying 86 F-16 fighter jets and sanctions could jeopardize the negotiations.

Unlike Pakistan, India only receives $100 million of mostly humanitarian assistance from the United States which are exempt from sanctions.

<b>But despite these concerns, Pakistan’s Foreign Minister Khurshid Mahmud Kasuri is believed to have told Ms Rice when he met her in Washington last week that Islamabad did not want to abandon the gas pipeline project, as it would bring in about $600 million a year.</b>

Pakistan’s GDP for the Year 2003-2004 was USD 96 Billion and for the Year 2004-2005 it is USD 110 Billion.

The Pipe Line will be ready in 2012 by which time Pakistan’s GDP would be <b>around USD 285 Billion</b> as follows on the basis of Pakistan’s Growth being limited to the present rate – even though it is expected to be even better :

2004-2005 : USD 110 Billion

2005-2006 : USD 126 Billion

2006-2007 : USD 144 Billion

2007-2008 : USD 165 Billion

2008-2009 : USD 189 Billion

2009-2010 : USD 217 Billion

2010-2011 : USD 248 Billion

<b>2011-2012 : USD 285 Billion</b>

Thus the Figure of USD 600 Million is too small and insignificant for Pakistan to beg the United States of America to permit the building of this Natural Gas Pipe Line!

What then is the <b>Real Motive for Pakistan to beg for this Natural Gas Pipe Line!!</b>

I can understand India’s Motive but I cannot fathom Pakistan’s anxiety to earn USD 600 Million Annually from the Year 2012 onwards.

There must be something more sinister!!!

Pakistan is not going to “BEG” for the paltry amount of USD 600 Million Annually!!!!

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->