An Out of Box Solution of Pakistan’s High Cost of Oil and Gas Purchases

Pakistan is facing a major challenge in the form of high oil and gas prices. The country imports the majority of its oil and gas, and the rising costs are putting a strain on its economy.

In recent days, the Iranian Ambassador to Pakistan has offered to supply oil and gas to Pakistan at low rates.

However, there is a stumbling block in the form of UN sanctions on Iran imposed by the West, led by the United States.

One possible solution to this problem is for Pakistan to make an arrangement with China to purchase oil and gas from Iran. China is already getting large quantities of oil and gas from Iran, so it could procure cheap Iranian oil and gas and then sell it to Pakistan.

This arrangement would be beneficial for both countries.

The following are some of the benefits of this arrangement:

~It would help Pakistan to reduce its energy costs.
~It would diversify Pakistan’s sources of oil imports.
~It would strengthen the economic ties between Pakistan, Iran and China.
~It would help to reduce the isolation of Iran.

Overall, the arrangement of China procuring cheap Iranian oil and gas and then selling it to Pakistan is a viable option for Pakistan to reduce its spending on energy supplies, which must be explored on fast track basis.

Syed Nayyar Uddin Ahmad
03219402157
Lahore.

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