Like Pakistan, India consumes more energy than it
produces. Consumption of natural gas in India is 8% and in Pakistan it is 27%
of the total energy requirements. Nearly 70% of India gas reserves are located
in state of Gujarat and the Bombay high basin. These are insufficient and inaccessible
to the far-flung regions of the subcontinent. India is a huge and growing
market for natural gas with annual consumption of bout 25 billion cubic meters
which is likely to go up to 3— billion cubic meters in 2010 and 45.3 billion
cubic meters in 2015. Such a colossal demand car only be met through the proposed
IPI gas pipeline. If the project becomes functional it will yield substantial
earnings to Pakistan in the form of transit revenues in addition to meeting
Pakistan own energy needs. The pipeline which is expected to he completed in 3
to 5 years time will pump 60 million cubic meters of gas to Pakistan daily
while India will receive 90 million cubic feet per day. Apart from meeting the
rising energy needs of two South-Asian countries, its economic benefits will be
shared by all the three countries. The construction cost of 2600 km pipeline
originally estimated at seven billion dollars will be shared by all the three
countries.
Pakistan has the advantage of being situated at the
confluence of Central Asia, South Asia and the Middle East. In this context the
geo-strategic advantages that Pakistan enjoys are: (a) It occupies a center
stage in the region formed by the above mentioned three regions. (b) Given
political stability at home Pakistan has the potential to record phenomenal
growth. It achieved growth of 8.4% in 2005. (c) Pakistan can serve as a conduit
for supplying energy from Central Asia to South Asia and to the rest of the
world. (d) Trade from Central Asian Republics with the rest of the world will e
able to flow through Gwadar port being the shortest route with minimum
freightage costs to the trading partners. (e) Pakistan shall not only be
assisting the countries of the region to make their trade relations
multi-dimensional, it shall also receive reciprocal benefits from its position
as an important partner in international trade in oil and gas.
Pakistan stands at the threshold of becoming energy
and trade corridor for CARs and Western China provided the development of
Gwadar ports proceeds without hindrance. A network of roads connecting Gwadar
with Karachi, on the pattern of coastal highway, Pasni, Osmara arid Turbat has
been planned for construction in four phases. The first two phases of the
project costing about $3 billion, will be completed by connecting Osrnara with
Pasni and in the fourth phase Pasni will be connected with Gupt at the Iranian
border. This network will be finally connected with China through the Indus
Highway. Under an agreement Pakistan, China, Kazakhstan, Kyrgyzstan, Uzbekistan
are already committed to developing extensive railroad links from Central Asia
and the Chinese province of Xinjiang to the Arabian Sea coast. In this scenario
Gwadar port emerges as a place of great strategic value giving tremendous boost
to Pakistan’s importance in the region extending from the Persian Gulf through
the Indian Ocean to Southeast Asia to the Far East.