The Politics of Energy Trade Between Iran and Pakistan

Pakistan and Iran are neighboring countries that have longstanding historical ties. However, there is little research available about Pakistan-Iran energy trade relations, especially with respect to the Iran-Pakistan gas pipeline. This research is based on primary data collected through qualitative interviews with key policymakers, academicians, and social activists, from Australia, India, Pakistan, and the United States. Based on the analysis of the data, this paper argues that there are risks involved for Pakistan in either honoring United States’ sanctions on Iran or bypassing them. In the former, Pakistan is incurring a huge cost in terms of delayed energy import from Iran while in the latter Pakistan, its officials, and its relevant organizations may face heavy sanctions by the United States. The study concludes that Pakistan must adopt a safer policy to pursue energy import from Iran while conducting good relations with both U.S. and Iran. The participation of India in the Iran-Pakistan energy project can increase the likelihood of its success. Key Words: Iran-Pakistan Relations, Energy Trade, United States, Politics, Foreign Policy