Exploring Gulf states

The visit by Iranian foreign Minister Manouchehr Mottaki and UAE minister and business executive Nahyan Mobarik al-Nahyan have opened vistas that need to be explored. The country faces severe power, gas and petrol shortages which have to be overcome to be able to run the wheels of industry, increase agricultural production, keep transport running and provide light and heating to domestic consumers. Pakistan has already signed an MOU with Iran to purchase 1,000 MW of electricity. It should seriously consider a fresh offer from Tehran of a similar kind. Iranian Foreign Minister's proposal to establish a power station in Pakistan should be urgently processed. While Iran is willing to offer crude on deferred payment for three months, Pakistan wants the period to be extended to a year. Mr Mottaki has not overruled the request, hinting that certain procedural matters stand in the way. It is for Islamabad to pursue the matter to get the difficulties removed. With India out of the IPI project, at least for the time being, some of the hurdles like the issue of transit fee and transportation tariff are no more there. The two sides need to urgently resolve the issue of the price of gas that remains the only hitch now. On Friday UAE Minister for Higher Education and Chairman of Abu Dhabi Group Sheikh Nahyan bin Mubarak Al-Nahyan expressed confidence in Pakistan's economic future and promised to bring more investments to the country.

America's position as an economic superpower has been damaged by the financial downturn. It is time Pakistan tried to gradually reduce its dependence on Washington. The oil-rich Gulf states are flush with petrodollars while the real estate boom in Dubai is nearing its optimum point. It should be possible under the circumstances to attract more investments from the Gulf. Pakistan also needs to realise its potential of exporting agricultural goods and industrial products to these states.