THE IMPACT OF SANCTIONS ON THE DEVELOPMENT OF THE IRAN-PAKISTAN GAS PIPELINE: A POLICY ANALYSIS

Abstract

This study examines the profound impact of US and UN sanctions on the development of the Iran-Pakistan gas pipeline (IP pipeline), a critical energy infrastructure project. Utilizing a policy analysis framework, this research explores the direct and indirect effects of sanctions on the project's financing, construction, and operational feasibility. Direct impacts include financial constraints and technological limitations, hindering Iran's ability to secure necessary resources and expertise. Indirectly, sanctions have eroded investor confidence, destabilized regional energy security, and limited Pakistan's access to crucial financing and technology. Despite these challenges, Pakistan and Iran have pursued various policy responses, including diplomatic efforts, alternative financing mechanisms, and strategies of economic resilience. However, the effectiveness of these responses has been limited, highlighting the enduring challenges of navigating complex international sanctions regimes. This research analyzes the geopolitical implications of these sanctions, including the roles of regional actors like China and Saudi Arabia, and proposes alternative policy options for Pakistan and Iran to advance the project. Recommendations include diversifying financing sources, enhancing regional energy cooperation, strengthening domestic energy infrastructure, and engaging in strategic diplomacy. The findings underscore the vulnerability of large-scale energy projects to geopolitical pressures and the need for enhanced regional cooperation to ensure energy security. Future research should explore alternative financing mechanisms, the role of regional actors, and the long-term socio-economic and security implications of the pipeline's delays, and the viability of renewable energy alternatives. Ultimately, this study contributes to a deeper understanding of the complex interplay between sanctions, energy security, and regional geopolitics.

Keywords: Sanctions, Development, Iran, Pakistan, Gas Pipeline