This is a good article that summarizes the regional issues of the Middle East and Pakistan very well.
Read @ Dawn.com (A web-based newspaper in Pakistan)
Engagement with Iran By Huma Yusuf Sunday, 15 Aug, 2010
The floodwaters in some parts are beginning to subside. As the Indus returns to the confines of its banks, pressing issues such as extremism, the energy crisis and regional stability will start to creep back into the headlines.
Moving on from this crisis, Islamabad will have to balance rehabilitation with the ripple effect the floods will have on matters as diverse as the economy, security and foreign policy. Without foresight and determination at this juncture, the country could struggle to stay afloat for decades to come. Much has already been written about the economic impact of the floods and the dangers of over-reliance on international aid. It has also been documented that flood-affected communities deprived of their livelihoods and aided in their hour of need by different extremist groups are now more vulnerable to radicalisation. Another aspect to consider is the impact of the floods on energy and regional stability, particularly in the context of Pakistan-Iran relations.
One important initiative that may fall victim to the flooding is the Iran-Pakistan gas pipeline project. Islamabad had recently announced that it would generate domestic funding for the project in light of intensified US and UN sanctions against Iran’s energy sector that are bound to discourage international investors. In the wake of the ‘super flood,’ economic collapse in Pakistan seems imminent, and Islamabad is scrambling to cut or divert spending to facilitate flood relief. It is unlikely that a multi-billion dollar energy project can proceed in this climate.
However, shelving the project — and with it, robust bilateral relations with Iran — at this time is inadvisable. As the US ratchets up the pressure against its nuclear ambitions, Iran is more determined than ever to establish itself as a key regional player. Tehran recently announced that it would host a moot for regional stakeholders to discuss ways in which to stabilise Afghanistan and brainstorm creative approaches to stem extremism and drug trafficking. While Iran flexes its regional muscles, Islamabad should coin a coherent policy for engagement with Tehran that is a departure from the on-again, off-again relationship of recent years. Such an effort will be made more complicated by the fact that Tehran is currently pursuing a strategy of multiple alliances in Afghanistan.
[SNIP]
This is where Iran can help. Bilateral trade of fuel and foodstuffs, which is crucial for the Pakistani Baloch, should receive a fillip through new agreements. Moreover, plans for financing the gas pipeline should be drafted. After all, a major pipeline project will create employment, generate revenue and foster development conditions that stave off extremism. Given the toll that recent floods have taken on Pakistan’s national vitality, any diplomatic outreach within the region that can jumpstart sustainable growth should now be prioritised — even if that means juggling Iran’s multiple and contradictory policies.
Iran is likely to use the situation very well to strengthen the bonds with Pakistan, further complicating US strategy against Taliban [not to mention Iranian nuclear quests].
-- Edited by Sanders on Monday 16th of August 2010 01:39:15 PM
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