World press on Iranian-Pakistani pipeline (March 11, 2013)

Read on the website Vestnik Kavkaza

"Pakistan, Iran launch controversial gas pipeline project" is an article published today by the Los Angeles Times.
"Work formally began Monday on a controversial pipeline that would feed energy-starved Pakistan natural gas from Iran, a project that has drawn stern warnings from the U.S. of possible sanctions against Islamabad if the South Asian nation doesn't reverse course," the article reads.
"Pipeline talks between the countries stretch back as far as 1994. Pakistan produces only 30% of the natural gas it needs, while Iran has the world's second-largest natural gas reserves. Many of Pakistan's factories and its transport system rely heavily on natural gas -- about 21% of the country's vehicles run on compressed natural gas. The U.S. has repeatedly warned Islamabad that forging ahead with the pipeline project could expose Pakistan to economic penalties under the Iran Sanctions Act. The law is aimed at curbing what the West believes are Tehran's attempts to build a nuclear weapons program, and imposes sanctions on entities that engage in certain business activities and energy sector-related transactions with Iran. Tehran denies that it is pursuing nuclear weapons, and insists its nuclear program is meant for peaceful, civilian purposes only."
So far, Pakistani officials have tried to appear unfazed by threats of possible sanctions. 'We are not in a fix,' Foreign Ministry spokesman Moazzam Khan said at a briefing last week. 'It is in our national interest to go ahead with this project. We know about [Washington's] concerns, but we expect and hope that all our friends, including the U.S., would show more understanding on this issue'," the article reads.
The Washington Post reacted to the news with an article "Pakistan, Iran presidents inaugurate project to bring gas to Pakistan over US objections."
"The Iran-Pakistan pipeline is designed to help Pakistan overcome its mushrooming energy needs at a time when the country is facing increased blackouts and energy shortages. But there are serious doubts about how Pakistan could finance the $1.5 billion needed to construct the pipeline and whether it could go through with the project without facing U.S. sanctions, which Washington has put in place to pressure Iran over its nuclear program," the article reads.
"Monday’s ceremony comes just days before the Pakistani government’s term is set to expire and could be designed to win votes by making the ruling Pakistan People’s Party look like it’s addressing the energy crisis. It also allows the government to thumb its nose at the United States, which is widely unpopular in Pakistan despite billions of dollars in military and civilian aid."
"It’s unclear whether Pakistan’s commitment to the project will continue if the ruling party loses the upcoming election. The PPP’s main contender is the Pakistan Muslim League-N, headed by former Prime Minister Nawaz Sharif, who spent years living in exile Saudi Arabia. The oil-rich gulf kingdom, a Sunni Muslim country with deep suspicion of Iran’s Shiite Muslim rulers, is believed to also be adamantly opposed to any deal that would benefit Iran," the article concludes.