Pakistan’s position in this dilemma is unique; it enjoys ties with Qatar, as well as with Saudi Arabia and the United Arab Emirates.
On 22 June 2019, Emir of Qatar Sheikh Tamim bin Hamad Al-Thani arrived in Pakistan on the invitation of Prime Minister Imran Khan for a two-day state visit. The state visit was specifically aimed at strengthening bilateral ties and improving cooperation in diverse fields between Qatar and Pakistan. In addition to the one-on-one talks between the Emir, Prime Minister Imran Khan and President Arif Alvi respectively, delegation-level meetings were also conducted between representatives of both countries. Notably, one of the most important results of this visit was the subsequent pledge for mutual cooperation with regard to gas exploration and the energy sector. The sheer competitiveness of the energy market is a stark reality. In a bid to secure a pivotal multi-billion-dollar supply contract, the Qataris reduced prices of liquefied natural gas (LNG) for Pakistan in May 2019.
With Saudi Arabia and the United Arab Emirates both offering enticing offers concerning deferred oil and LNG payments for Pakistan, Qatar sought to modify LNG prices in order to successfully secure the deal. It is reported that presently, Qatar exports ‘500 mmcfd [million cubic feet per day] to Pakistan under a 15-year agreement struck at 13.37% of Brent crude price.’[i] Pakistan has been negotiating with a number of countries including Russia, Turkey, Malaysia, Azerbaijan and Italy with regard to attaining long-term gas deals. Saudi Arabia (and state-owned petroleum and natural gas company Aramco) has also shown interest in securing a gas deal with Pakistan. Continue reading
No crisis today remains regional. There is no such thing as isolated or insulated regions … watch video
The fragmentation of the Middle East into a collection of interest groups has become a defining feature of the region’s political economy. “Palestine is essentially an Arab country, and must remain so,” was the uncompromising response given by Pandit Jawaharlal Nehru in 1947 to requests made by Albert Einstein, at the behest of Zionist leaders, to support the creation of the state of Israel. Seven decades later the atmosphere is rather different and Modi has comprehensively cemented ties with Israel by becoming the first Indian prime minister to make an official visit to Israel, a premier supplier of arms and military technology to New Delhi. The passage of seventy years has resulted in the rise of new power brokers such as the Saudis who are accused of being the primary supporters of state sponsored terrorism in an official report, the publication of which is deliberately being withheld by the British government as it does not want to damage booming arms sales to Riyadh: bombs used to kill innocent civilians in Yemen. All this squares up poorly with Trump’s claim that Iran is the foremost pariah state.
The ongoing ostracism of Qatar shows that the Saudis want to call the shots on everything on their terms. In a session chaired by Dr Masuma Hasan, Javed Jabbar gave an insightful talk on the mechanics underpinning Iran, Qatar, Saudi Arabia’s relations with the US. The event was widely reported in the media and extracts of the reportage are available below. Jabbar bemoaned Saudi hegemony and recalled that the 13 sweeping demands that Saudi Arabia had made of Qatar sounded frightfully similar to a power point presentation conjured up by global management consulting firm McKinsey & Company – a favourite of King Salman bin Abdulaziz. According to Jabbar, one cannot ignore the fact that only six years ago, Saudi Arabia and Qatar jointly invested in an Israeli company called IDA Holdings. Continue reading
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