Salam Central Asia

Pakistan and Turkmenistan want to connect - for trade, energy and much more

Salam Central Asia
On March 18, Turkmenistan President Gurbanguly Berdimuhamedov arrived in Pakistan for a two-day visit aimed at “enhancing trade, economic relations, energy sharing, people-to-people contacts and tourism between the two countries.” Berdimuhamedov met President Mamnoon Hussain and Prime Minister Nawaz Sharif during the course of the two days, discussing projects ranging from the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline to Dushanbe’s potential link up with the China Pakistan Economic Corridor (CPEC).

On March 19, President Berdimuhamedov and PM Sharif signed a joint communiqué. The respective state ministers further signed eight accords of cooperation, which included seven memoranda of understanding (MoUs), including financial intelligence and energy.
"An Islamabad-Beijing-Moscow axis can help Pakistan overcome diplomatic hurdles of the past"

“Given the special geo-economic and geo-political significance of both countries, Pakistan and Turkmenistan decided to pay special attention to establishing air, road and rail links on a priority basis,” read the communiqué, which highlighted that the two countries haven’t made the most of their trade potential and would henceforth work on enhancing bilateral ties.

On the same day, March 19, Federal Commerce Minister Khurram Dastgir expressed Pakistan’s interest in linking Turkmenistan with CPEC. “As we move forward to improve regional connectivity, we could further align our economic and trade interests,” he said while addressing the first Pakistan-Turkmenistan Business Forum.

Dastgir says opportunities like the CPEC emerge in decades. “It is comparable to the great trade route discoveries of the world,” he says adding that Pakistan’s accession to the TIR (international road transport) convention would help connect the country to Turkmenistan and other states in Central Asia.

Tariq Osman Hyder, former Pakistan ambassador to Turkmenistan, believes that TAPI could provide crucial linkage to CPEC. “Connecting the region with China and CPEC will be to Pakistan’s benefit. But of course any linkages would hinge on peace in Afghanistan,” he says.

Volatility in Afghanistan has long been considered the major reason behind the delay in the initiation of TAPI, a project that was conceived in the 1990s. The pipeline was finally inaugurated in December last year, with PM Sharif calling it a ‘trailblazing project’ at the inauguration ceremony in the Turkmen city Mary.
"The energy reservoirs are massive, absolutely massive"

Osman belives TAPI is more feasible, both as a source of energy and diplomatic networking, compared to the Iran-Pakistan (IP) pipeline which has long been jarred by US sanctions on Iran. “As long as the Americans are behind it TAPI, would be feasible,” Osman says. “Unlike IP, which depends on US stance on Iran.” But the former ambassador to Ashgabat maintains that TAPI will only work if there is peace in the northeastern part of Afghanistan, which the pipeline will traverse.

Former Caretaker Finance Minister Salman Shah says that not only TAPI, but Pakistan’s relations with the Central Asian states since their independence from Soviet Russia has been affected by the situation in Pakistan.

“It’s been nearly three decades since the Central Asian states got their independence, and we are yet to make any breakthrough into the region,” Shah says. “And this has primarily been due to the perpetual Afghan war. First there were the Soviets, then the US – the Afghan war is a constant hindrance to any cooperation in the region.”

Shah says CPEC has made Pakistan a lot more lucrative for foreign countries and investors alike, and hence could tempt the Central Asian states into jumping aboard as well. “CPEC has been advertised everywhere, and Pakistan should sell it even more,” Shah says. “The Central Asian states should think of Pakistan as their route to the ocean. We need to sell this idea to more states.”

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Former Foreign Minister Khurshid Kasuri says despite the delay in forming ties, the significance of Turkmenistan has always been evident to Islamabad. “Turkmenistan has a unique importance,” Kasuri says. “And when I was the foreign minister we were very aware of it. It’s a gas rich country.”

“Back then we were focusing on the Iran-Pakistan-India pipeline and the Americans weren’t too happy about that. We persisted, but India backed out after the US gave them the Civil-Nuclear deal.”

Kasuri says Pakistan needs to focus on multiple sources for energy and that is what Islamabad has maintained to resist US sanctions.

“We were adamant considering that we are an energy deficient country. The US gave us TAPI as an alternative. We were happy with it, but not as an alternative. Since Pakistan’s population is growing, we wanted gas from as many sources as possible: Qatar, Iran, Turkmenistan and others,” he says.

The former foreign minister said relations between Washington and Moscow have also impacted Pakistan’s ties with Central Asian states, especially Turkmenistan.

“Back then Russia said Turkmenistan doesn’t have enough energy resources, since it’s committed to Moscow – since then they’ve changed their stance in synchrony with improved relations with Pakistan. Basically the Russians were unhappy with Americans encroaching on ‘their territory’,” Kasuri says.

“The Turkmen governments have been very careful not to annoy the Russians, because they have been dependent on supplying energy to Moscow. Most of their pipelines were directed towards Russia, while this effort to drive these pipelines southwards was spearheaded by US – partly to stop Pakistan from going after IP and partly to give Turkmenistan an outlet away from Russia”

A Pakistan diplomat says off the record that improved relations with Russia have had a huge impact on Islamabad’s policy with regards to Central Asia. “While the Iranian nuclear deal might help IP, Pakistan’s growing relations with Russia could help boost TAPI’s chances, he says. “Pakistan’s defence deal with Russia last year, along with CPEC, has added momentum to the calls of an Islamabad-Beijing-Moscow ‘axis’ which can help Pakistan overcome diplomatic hurdles of the past. This includes unfulfilled relations with Central Asian states, most notably Turkmenistan, which has showed most interest in Pakistan among the Central Asian states.”

Salman Shah says historical disinterest has been mutual as far as Turkmenistan and Pakistan are concerned, and this now needs to transform into mutual interest and collaborations. He asserts that TAPI and any connectivity with CPEC should be bolstered with agreements in other areas as well.

“We should also back this up with signing free trade agreements,” Shah says. “There should be student exchange. Investors and businesses should take interest in each other’s region as well. And we have to seriously develop our infrastructure.”

“There should be information-sharing, and people-to-people contact. As things stand, if you want to go to Ashgabat you have to go via Dubai or Istanbul.”

Khurshid Kasuri says among all the talks of energy sharing, and linking TAPI with CPEC, there is a glaring opportunity that seemingly no one is noticing.

“Everyone’s overlooking the gas fields in Uzbekistan. There are massive, absolutely massive, energy reservoirs there as well. If TAPI is connected to CPEC, we can link the Uzbek gas sources as well to not only add to the energy mix, but to boost ties with other states in Central Asia as well.”

Shah believes that Islamabad’s focus on the West has blinded it to trade opportunities closer to home.

“We haven’t been able to enhance trade with Iran despite a 70-year history of relations. Our focus is always on US and Europe. We don’t pay attention to our own region and its potential.”