In the face of further sanctions, Iran has offered to supply crude oil to Pakistan at cheaper rates. The oil supply to Pakistan from Iran was disrupted because banks refused to issue Letters of Credit under sanctions imposed by the United Nations. Pakistan faces a shortage of oil. Its economy is near collapse, as more and more industrial units are shut down due to the energy crises. Iran has all along been extending cooperation and Iran-Pakistan gas pipeline project is one good example. In addition to its willingness to supply crude oil, Tehran has also offered to set up an oil refinery near Gwadar. President Asif Ali Zardari made a very daring speech at Garhi Khuda Bakhsh in which he said that Pakistan would explore all options to meet the domestic energy needs. Without mincing his words, he said that work would continue on IP gas pipeline project and effort would be made to complete it ahead of schedule. If Federal Minister Dr Asim Hussain’s claim is to be believed, this project is expected to complete by December 2013. The supply of energy would certainly be in Pakistan’s best interests. However, we will have to continue to tiptoe a delicate line between the threat of sanctions we can ill-afford and the temptation of energy supplies which for our very survival we cannot ignore.