ISLAMABAD – A Pakistani advocacy group says a plan to import natural gas by pipeline from neighboring Iran would be an economic "death sentence" for the country because the gas price is too high.
The Pakistani government has struck a deal with Iran to import gas in the hope of relieving the country's energy crisis, especially the shortage of electricity. Gas is used to fire many of Pakistan's power plants.
But the Islamabad-based Sustainable Development Policy Institute says in a report released Wednesday that the contract with Iran means the gas sold to Pakistan will likely be several times more expensive than the domestic gas currently used in the country's power plants.
The deal comes despite U.S. opposition. Pakistan could face U.S. sanctions for importing Iranian gas.