Economic Interestsīy establishing sound economic and trade relations, Pakistani goods can ensure and access the firm $90 billion Central Asian market and simultaneously, the republics of Central Asia can prove to be an economical source for Pakistan’s imports of raw materials and manufactured goods. The nearest, top-quality, cost-effective, and untapped billion barrels of energy reserves are the primary attraction that Central Asia holds for Pakistan. With the world’s second-largest energy reservoirs, Central Asia can be the solution to all the energy problems of Pakistan. In this trade-off between complying with the state’s energy demands and maintaining one’s integrity and sovereignty, the republics of Central Asia can prove to be a breath of fresh air in this respect. 5Ĭurrently, Pakistan is mainly dependent on Saudi Arabia and other Gulf countries to fulfil its domestic energy demand, but these allegiances have time and again caused Pakistan to compromise on national interests. 3 In order to meet these demands, Pakistan is draining out its energy resources, with a prediction of exhaustion of oil reserves by 2025 and natural gas reserves by 2030 4 as well as the complete scarcity of water by 2040. 2 With an estimation of a 3% population growth rate annually, Pakistan’s annual energy demands and consumption rates are accelerating manifolds.Īs per an economic survey, energy sector consumption in 2011 was 38.8 MTOE (million tonnes of oil equivalent) and it has raised the bar up to 70.5 MTOE in 2016. 1 This insufficiency has inflicted losses worth billions of dollars upon the country’s economy.Īccording to a report published by Marco Economic Insights, the power crisis has cost Pakistan approximately $82 billion in GDP between 20. Pakistan produces 25,000 MW of electric supply and at the height of the season, has an electricity shortage of up to 7000 MW. Pakistan, the second most populated country of South Asia and the sixth most populated country in the world, faces a severe energy crisis. With the changes in international political dynamics coupled with a leadership change, Pakistan has revisited its policy towards Central Asia and this shift is aroused by a number of interests. The aim of this term paper is mainly to explore and analyse the possible motives of Pakistan, China, and the United States behind the hunt for dominance in the region, their underlying interests, and suggestions for all three contenders to enhance their influence as well as for the republics of Central Asia to keep at bay any one of these competitors from becoming a major stakeholder in the region. These are the factors that intrigue regional and global powers to engage in a power struggle of enhancing their respective influence in the region. Known as the heartland of Eurasia, Central Asia serves as a vital link between a number of strong and dynamic economies, including China, the European Union, India, Japan, and Russia.Ĭentral Asia’s significance stems from its huge reserves of untapped, clean, efficient, secure, raw, and abundant energy, mineral and metal resources its landlocked geography its geostrategic location and economic potential. Central Asia, the descendant of the dismembered Soviet Union, has today transformed into the pivot of global geopolitics of energy.
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