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Indo-Pak Détente: Sustainable Ambiguity
Khaled Ahmed

India and Pakistan moved more effectively in the direction of bilateral normalisation in the year 2004. On the Indian side there was general approval of the initiative taken by Prime Minister Mr Atal Behari Vajpayee to pursue peace talks with Pakistan. The hawks kept their rhetoric in check for fear of becoming unpopular. This 'positive' factor however did not swing the 2004 Indian election in favour of the BJP alliance; yet people also did not vote the government out because it had begun to normalise with Pakistan. In Pakistan, President Pervez Musharraf was encouraged to pursue his policy of normalising with India by the positive response of the general public. Normally such a response is difficult to gauge, but during the Indo-Pak cricket series in Pakistan, it was so palpable that the Pakistani hawks could not deny it.

The Congress Party has felt an initial series of jolts while settling into the groove created by BJP's Pakistan policy. Prime Minister Manmohan Singh has retreated into his inscrutability after one rather tentative statement; and Foreign Minister Natwar Singh has fallen defensively back on the admission that border readjustments were possible with Pakistan if the latter would show the kind of flexibility on Kashmir it promised. As if on cue, President Pervez Musharraf has reached out for his primer on sustainable ambiguity after another sally on 'core issue' Kashmir in May. In India, the popular sentiment for normalisation has surged after the BJP interregnum. The private sector economy has new muscle which the Congress must recognise and see Pakistan, not as America's Cold War Trojan horse, but as a transit country that will play an ancillary role to India's economic self-image at the global level. There are some 'reconstructed' Congress personalities that bid fair to take the centre stage in the days to come and push this view.

The high point in the new bilateral process came in the January 6 Indo-Pak Joint Statement during the 12th SAARC summit in Islamabad in which the two sides pledged to hold talks on all bilateral disputes, including the Kashmir issue1. The 'composite' dialogue was to begin in June 2004 with a foreign secretaries' meeting as the first step in the negotiating spiral that was expected to drag out incrementally over a protracted period of time. Meanwhile, normalisation was to be allowed to go ahead, a break from the past Pakistani position of making normalisation conditional to a substantial breakthrough on Kashmir. Ceasefire on the Line of Control (LoC) in Kashmir was enforced and was held, which meant normalisation of daily life in the Neelam Valley in Azad Kashmir and an end to expenditure of extra funds on mobilisation along the regular border. Pakistan's need for this respite was signalled by the fact that it did not react negatively to the fencing of the LoC by India while it was discussing the bilateral process with Pakistan. Old travel routes between India and Pakistan were reopened and new ones promised and there was a general agreement that this level of 'openness' in allowing normalisation of relations had not happened before and that this time the peace overtures between the countries were for real. Unpressured from the security establishment, the businessmen of Pakistan appeared less scared of freeing the bilateral trade with India.2

Durability of India's New Self-perception
What propelled the two states to move so realistically towards normalisation in 2004? What are the chances of this normalisation leading to the resolution of disputes that have bred so much hostility between the two over the past 57 years? Are there fundamental changes in the self-perception of the two that now require a readjustment in the bilateral equation? Is there a strategic 'revision' of objectives on both sides and is it planted deep enough within the establishments on both sides to endure? Are there 'external persuaders' in this phase of unprecedented bilateral optimism and how effective and permanent are they supposed to be? What about the hardline proponents of the old assumptions of ideological stasis between the two states and the ability of these elements to refer successfully to the overwhelming jurisprudence of past hostility? How realistic is the possibility of rulers on both sides abandoning the exercise of 'ambiguity' and slipping back into the politically 'safe' and 'unambiguous' condition of bilateral deadlock?

A vague compulsion for normalisation and settlement of disputes has been felt time and again by India and Pakistan after the signing of the Simla Agreement in 1972. How the process that emanated from this compulsion unfolded in the past 30 years depended on the relative economic and military strength on both sides, including strength derived from international support. General Zia-ul-Haq, involved in running a strategically important jihad in Afghanistan against the Soviet Union, tried 'cricket diplomacy' with India to keep the eastern frontier quiet but intervened in the uprising in East Punjab on the sly as a part of the same policy3. Had the Kashmir uprising taken place then, he would have sent in the mujahideen into Indian-administered Kashmir, depending very much on the bulk of trained jihadis till then. After the end of the Cold War, India focused more on its strategy of regional dominance and moved towards Islamabad to oust America's growing influence there. Inside Pakistan the resistance to normalisation within the military-bureaucratic establishment was overwhelming in the 1990s. International pressure for a bilateral thaw and Pakistan's own unprecedented economic decline persuaded both the mainstream parties, Benazir Bhutto’s Pakistan People’s Party and Nawaz Sharif’s Pakistan Muslim League (N) to think of defusing tensions with India. Both were alternately ousted from power.

Beginning with the year 2000, Pakistan and India seem to have accepted a revision in their self-perceptions; India triumphantly as the status quo power and Pakistan somewhat dangerously as a rebuffed revisionist state. In India the pacifist recommends generosity towards Pakistan in the interest of an increase in the regional and global status of India, backed by an economic take-off indicated by high growth rates. The aggressive strategist recommends a diffusion of focus on Pakistan in favour of tying up with the global power(s) and thus becoming a military power that no one in the world including Pakistan can ignore. Both think that India has neglected to realise its potential as a power among global powers, that it has been guilty of a strategic 'under-stretch' and it can only transcend its strait-jacket of a regional state by ending its neighbourhood entanglements.

The pacifist strategist in India is exemplified by nuclear physicist C Raja Mohan who thinks that India has now made its break with its socialist past final and is looking forward to cooperation with the west, in general, and the United States, in particular. The plank on which the new relationship would be reared is democracy. The new partnership would be in the realm of thought rather than political expediency, in the 'Enlightenment project' that underpins western values than in the balance of power politics in a region where China is to be countered. Europe, where the nation-state is in decline, is not the arena where India is to make its play, but at the global level where America still follows raison d'etat as the organising principle of world politics recognised by states like Pakistan too, tackling with such Hobbesian states as Somalia and Afghanistan where everyone fights with everyone else.

‘The unexpected support from New Delhi to the Bush Administration's controversial positions (on war on terrorism and doctrine of pre-emption) is reflective of a new India that is breaking out of its past and struggling to find a new set of organising principles for its foreign and national security policy. The new Indian approach to world affairs comes on top of a steady evolution of Indian security thinking through the 1990s. Just as Europe is moving away from the ideas that shaped its earlier interaction with the world, India's internal positions too have evolved amidst fundamental change at home. No wonder then, at the very moment when Europe proclaims that power politics are passé, India is beginning to de-emphasise the notion of collective security and to stress the importance of comprehensive strength and balance of power. At a time when Europe dismisses the notion of national sovereignty as the basis of dealing with global issues, India is committed to strong defence of the concept'.4

Raja Mohan is the Indian intellectual, in the mould of K. Subrahmanyam, whom the Americans used as a channel of communication with the BJP government to signal their change of attitude, but a more important person in terms of penetration into the institutional thinking of India is Bharat Karnad who wrote: 'Recently, Prime Minister Atal Behari Vajpayee surprised many by talking about ‘New unexpected threats…constantly emerging in the neighbourhood’ to an audience of the heads of police, para-military and Intelligence agencies without once attributing terrorism in Kashmir to Pakistan. A day later in his inaugural speech to the Annual Combined Armed Forces' Senior Commanders' Conference in New Delhi, the PM shook up many more by choosing to not delve (sic!) at all on Pakistan as any kind of threat -- strategic, theatre-level or even tactical. A sensible case has been made for many years now that for India to pack credibility as a would-be great power requires it to act its weight and size and to see Pakistan for what it is, not a threat but a strategic nuisance. And that, to continue to fixate on Pakistan is for India to acquiesce in Islamabad's paring India down to its size and for New Delhi to wilfully engage in India's ‘strategic reduction’. The Indian government apparently has got round to accepting this rational assessment of what India's policy should be. Indeed, and this may be the most far-reaching measure of all in terms seeding a more rational policy mind set, foreign service officers are being penalised (in terms of extension in service and promotion) for excessive anti-Pakistan-ism! (The new mindset) reflects India's growing self-confidence based on two trends: the quiet satisfaction, on the one hand, with the underway programme of thermonuclear and nuclear weaponisation and long-range missile development coupled to the encomiums India has gathered from its growing reputation for ‘responsible’ nuclear state behaviour.'5

Pakistan's Post-jihad Realism
On the other hand, Pakistan has been made to feel that its two decades of jihad have forced it to commit the error of a strategic 'over-stretch'. It has neglected its economy during the 1990s when it was busy pursuing 'strategic depth' beyond its borders. As Pakistan endured its worst years in relation to its economy, India pulled out of the trough of its 'Hindu rate of growth' and started attracting the attention of the world as a state of great economic potential. As luck would have it, in the aftermath of the Kargil Operation in 1999, the army itself was ruling in Pakistan when the articles of new strategy were read out to Pakistan. After the 9/11 incident, which saved Pakistan from the disastrous consequences of its 'strategic over-stretch' of the 1990s, these lessons were driven home through the instrumentality of the UN Security Council. President Pervez Musharraf discovered that the policy of low-intensity conflict with India (jihad) and 'highlighting' of the Kashmir issue through war had not only isolated Pakistan in the West because of its subliminally blackmailing aspects, it had also alienated the Islamic states that had been paying lip-service to the Kashmir jihad. He was shocked to discover that there was a Saudi-led move inside the OIC to accept India as a full member of the organisation.6

The changed situation has forced some rethinking in Pakistan, understandably not among the official organs of strategic expression because of the shift of paradigm implied in it and the fear of a public interpretation of it as a 'defeat'. Pakistani writer on strategy Dr Ayesha Siddiqa wrote recently: 'The most noticeable feature of the design of Pakistan's security perception is its rather simplistic linearity that identifies security and national interest mainly as response to an external threat…Interestingly, such a view is held despite the fact that Islamabad itself is keen on pursuing its interests without creating space for others. Such an orientation, in turn, has led to an approach based on two opposing ends of the spectrum: confrontation punctuated by short spells of rapprochement, and seeking extra-regional partnerships that could provide Islamabad with relative strength to counter its traditional adversary. In other words, the continuously high threat perception has resulted in either producing confrontational linkages or alignments that have been sought by design primarily to offset problems of military inferiority versus its main adversary India. Hence, Islamabad's alignments have never been proactive and, in fact, have been limited to seeking military or diplomatic assistance that could bolster Pakistan's position vis-à-vis New Delhi…Pakistan has never ventured to extend its security vision beyond India. In fact, Islamabad's view of the entire world appears simplistic with the world divided between states that are considered important for their ability to provide any direct or indirect help in strengthening Pakistan against India and those that are of no relevance in this regard. Or to put it in another way, from the Pakistani establishment's perspective the international community comprises two categories: states that are friendly to India and are part of the opposite camp, or those whose friendship must be sought for beefing up Islamabad's military-strategic position versus India. Unfortunately, it is this posture that contributed towards the peculiar makeup of Pakistan's Afghan policy and later in framing the response towards the U.S. post-9/11.'7

On the economic front, the Pakistani business community appeared less 'mercantilist' on the subject of free or liberalised trade with India in 2004. The pro-free trade point of view, suppressed during the chaotic ISI-dominated 1990s, was now allowed to express itself. A highly rated Pakistani economist, who will not be named, recommends that Pakistan change its policy of withholding the granting of Most Favoured Nation (MFN) to India as a first step towards eventual free trade under SAARC. He states: 'The gains from MFN trade with India are substantial. All consumers -- Pakistanis and Indians -- will be unambiguously better off. More goods means variety and competition among sellers and this always works to the consumers' advantage. The government will be better off because legalised trade will generate tax revenues now lost to smuggling. Framers will also benefit because fresh produce would be marketed in towns and cities across the eastern borders. Competitive and efficient manufacturers will gain because access to the much larger Indian market will lower costs. Inefficient and subsidy-dependent manufacturers will lose out and they will fight. They will raise the flag and/or will appeal to religion, even Kashmir, to protect their monopoly-ridden gravy train. But they are a tiny minority compared to the beneficiaries and their whining must be taken in stride. Liberalising trade with India will create up-country points of economic growth and this is also good. In time, Lahore will re-emerge as the centre of commerce and finance serving many cities across the border. A soft border in Kashmir will create another growth centre in the north-east heralding an era of peace and prosperity that Kashmiris so badly need'.8

The 'Deniable' American Factor
Those observers who place a lot of premium on the American factor in South Asia, think that the current process of normalisation is a part of India's own final reconciliation with the United States, as indicated above in C. Raja Mohan's comment. New Delhi began to get rid of its 'third world-ism' and other isolationist doctrines of the Non-Alignment Movement in the 1990s as a part of its foreign policy during the 1990s. Its Nehruvian socialist paradigm was also at an end in this interregnum. It was rewarded for this turn in foreign policy by America when President Clinton visited India in 1990 and offered India 'strategic partnership' through membership in the Community of Democracies programme, pointedly ignoring Pakistan where General Musharraf had just ousted the democratically elected government of Nawaz Sharif. Clinton had earlier defused the tense situation in South Asia by getting Prime Minister Nawaz Sharif to call off the Kargil Operation, an event that exacerbated an already strained relationship between the Pakistani army chief and the Pakistani Prime Minister after a 'normalising' visit by Indian Prime Minister Vajpayee to Lahore the same year.

However, the American tilt, before it could prove damaging to Pakistan, was 'corrected' in favour of Pakistan by the terrorist attacks in New York and Washington on 11 September 2001. America had to accept Pakistan as a crucial ally against Al Qaeda. The Bush administration had to keep the Indo-Pak front peaceful to achieve success in its anti-terrorist, anti-Al Qaeda mission in Afghanistan. To allay fears in New Delhi, it offered significant concessions to India on Kashmir: it accepted, together with the European Union, two general elections in Indian-administered Kashmir as fair, and clearly switched off its earlier support to an 'independent' Kashmir. India, while verbally rejecting any third-party mediation resorted repeatedly to 'facilitation' by the United States in its relations with Pakistan. It was also made to realise the efficacy of American leverage on its economy when it was made to withdraw its troops from the Pakistani borders in 2003 after a wholesale withdrawal of foreign corporate presence from the Indian soil. The pro-peace captains of the private sector economy in India grew in influence with New Delhi in this period.

President Pervez Musharraf had to adjust to the changing situation. He had stubbed his toe in 2001 at the bilateral summit in Agra while vacillating between his 'flexibility' thesis and his popular posturing for the primacy of Kashmir in the agenda of bilateral talks. Prime Minister Vajpayee eventually failed to meet the challenge because of infighting within his own cabinet over how far India could go in accommodating President Musharraf's overture9. Both sides had to be ambivalent over Kashmir: President Musharraf had to appear not to be giving up on the old Pakistani stance on Kashmir, while Prime Minister Vajpayee had to keep his real Kashmir cards hidden from public view so as not to betray the all-party Lok Sabha consensus on Kashmir reached in 1994. There was some 'wiggle-room' for both. Musharraf knew that the bilateral nature of the UN resolutions on Kashmir was no longer relevant as the people in Pakistan had gradually accepted a third party in the dispute: the Kashmiris. He put forward the safe formula of a solution acceptable to all the 'three' parties on Kashmir and went to the extent of saying that he could even 'go beyond' the UN resolutions on Kashmir.

Post-BJP Jolts
The change in government in New Delhi has rocked the boat of Indo-Pak normalisation. First Prime Mnister Manmohan Singh was forced to articulate his objection to putting Kashmir forward by President Musharraf as the core issue: he stated that India would go forward in peace talks with Pakistan as long as they did not include changing the borders and holding a plebiscite in Indian-administered Kashmir. (One must keep in mind the Congress belief that Prime Minister Zulfikar Ali Bhutto had promised conversion of the cease-fire line in Kashmir into an international border at Simla in 1972. This belief now makes at least one subtext of the policy on Simla Agreement.10) What had remained unexpressed under Vajpayee was now clearly asserted. Had the Joint Statement not been provided a self-serving gloss by President Musharraf in his statement -- that he would not be a part of the peace process if Kashmir was not accepted as a core issue -- there was enough ambiguity in the document to allow the process to go on under Prime Minister Manmohan Singh.

Foreign Minister Natwar Singh was also given opportunity by this 'breaking of cover' to invite Pakistan to follow the model of India normalising relations with China without first deciding the territorial dispute dating from the 1962 Sino-Indian war11. Will India and Pakistan start going back to the old conflictual pattern in the days to come? Is India under Congress no longer a state conscious of its 'under-stretch' and ambitious to become a global player after 'disentangling itself from its neighbourhood problems'? Does President Musharraf really have the option of returning to jihad if India doesn't budge under Congress, especially as the militias he would have to mobilise for jihad in Kashmir have tried to kill him? 12

The Congress was just climbing out of its Cold War world view when its handling of the Babri Mosque incident in 1992 severely challenged its monopoly on power in India. The era of coalitions that dawned on India shattered a number of Nehruvian myths. Congress saw BJP make its pitch successfully against socialism as the embedded creed of Indian democracy and boldly revised the global outlook formed during India's location within the Soviet bloc. India is no longer the same state in 2004. The ideologues of Congress have to pick up the threads where they had let them drop after the tragically shortened tenure of Prime Minister Rajiv Gandhi. India no longer perceives Pakistan to be a threat the way it did during the Cold War and has now to deal with nuclear deterrence in the region. Indian secularism's paranoid side has to go if it has to stand up to the bold revisionism of Hindu nationalism. The world dislikes BJP's religious ideology but if it has to weigh it against the old hang-ups of the Congress, it will easily plump for the BJP again.

There are many in both India and Pakistan who want the détente to continue and deliver positive results in the end. India's Praful Bidwai attempts to explain why the Congress and its allies will have to stick with the process of dialogue with Pakistan:

'There are at least three reasons for taking Natwar Singh's statement (in favour of détente) seriously. For one, Singh never talked of the Simla agreement by itself. He also said that India is committed to all the post-Simla agreements and declarations, including Lahore, and the January 6 joint statement by Prime Minister Vajpayee and President Pervez Musharraf. For another, Singh's emphasis on some particular aspects of past agreements and understandings between India and Pakistan does not devalue, leave alone negate, the recent solemnly agreed framework for a ‘composite dialogue’ on all subjects, including Kashmir. That framework abides. And for a third, the totality of the UPA government's official views and statements on a dialogue with Pakistan takes precedence over Singh's emphasis, nuances or preferences. That's how foreign policy has been made and implemented in India, especially on vital matters like peace with Pakistan. Or else, it would be hard to explain why India did not obstruct Pakistan's return to the Commonwealth and its entry into the ASEAN Regional Forum, which too has been a subject of bitter contention since even before the NDA/BJP came to power. Clearly, the foreign policy establishment has changed its basic stance and posture towards Pakistan, from a confrontationist to a cooperative one. This is a wise move. It is even more noteworthy that as soon as he was sworn in, Prime Minister Manmohan Singh emphasised normalisation of relations with Pakistan as a key priority for his government. The UPA, it is important to remember, cannot be reduced to the Congress party or a collection of old-fashioned politicians mired in suspicion of Pakistan. The alliance is the result of an embryonic new social coalition between many underprivileged strata, which do not carry that ideological baggage.'13

Reprieve from 'Official' Nationalism?
There is no denying that for the pessimist there is much to go on. It is difficult to make a case in favour of a continuing détente on the basis of what the politicians may say. There is a dangerous lack of political consensus in Pakistan on virtually all issues. One central sticking point in this atmosphere of dissension is Pakistan's acceptance of 'American dictation' by the Pakistan army. Significantly, the resolution of the Kashmir issue under 'changed conditions' forms one important element of this 'dictation', as opinion-makers in Pakistan would have the people believe. Kashmir is also the central plank in Pakistan's national consensus, firmed up through years of the army's paramountcy as allowed by Pakistani nationalism. The unspoken agenda of the army has been India’s defeat and reclamation of Kashmir. Pakistan has lost national consensus for many reasons, the major one being its inability to defeat India within a reasonable period of time. The time for revision of Pakistani nationalism has arrived without a matching domestic intellectual ability to revise. In this intellectual wasteland, Musharraf is the best bet for both Pakistan and India. The state in Pakistan no longer believes that the nation can go on seeking India's defeat -- not even through jihad or hoping that India would somehow collapse by itself for following the flawed doctrine of secularism. The state wants to purge the early consensual folly of adopting the formula of palpable external threat. It wants to replace the threat-of-India theory with a more realistic economic dream. It wants to 'rationalise' India to be able to live alongside it. But the doctrinal demons it released earlier in its history refuse to exorcise. For once the state, as moulded by the military-bureaucratic establishment in Pakistan, is right; and civil society, as led by the politicians, is wrong.

In India and Pakistan, a reference to external pressure implies that the two states are incapable of freeing themselves from manipulation by the global power(s). One hopes that for whatever reason, both India and Pakistan will stick with the composite dialogue and allow further normalisation without demanding interim 'results' according to their separate wish lists. An incremental approach is possible because of popular support for it on both sides. This incremental process can be assisted by a bilateral willingness to agree on big projects. For instance, Pakistan will forget its coyness about Kashmir if India agrees to the Iranian gas pipeline project which allows Pakistan an attractive transit fee in return for a number of internal changes that it has not yet calculated. For once Pakistan, with its imagination fired by the economic significance of the project, will shift focus from the primacy of the issue of Kashmir that India finds inconvenient. India's petroleum minister Mani Shankar Aiyer, who is said to favour the Iranian pipeline, will know fully well what the pipeline means in the context of the bilateral talks.14

The way India and Pakistan have interacted after the withdrawal of the Indian troops from Pakistan's borders in 2003 points to the possible 'meta-structure' of the talks expected to begin in July 2004. Prime Minister Vajpayee's initiative with Pakistan was pleasantly hijacked by the atmospherics released by the visit of the Indian cricket team to an already positively conditioned Pakistan. Well-timed announcements of fresh opening of communications disarmed the people and forced the hawks to tone down their rhetoric. Such announcements from the Indian side must continue even as India engages in the closed-door composite dialogue at various levels. It has been assumed in Pakistan that this dialogue will not come to a quick conclusion; it is also understood that while a discussion of the Kashmir issue would be initiated along with other issues, Pakistan will not insist on 'meaningful' progress on it as it has in the past. Peripheral issues, like the up-river water projects by India, or even Siachen, can actually be used to keep the public on board in Pakistan and to relieve pressure from President Musharraf. India must use the peripheral issues to defuse the situation and keep up the atmospherics in return for a soft-pedalling on Kashmir.

What should the Congress Party do in the months to come to save the current halcyon period from returning to the more comfortable state of hostility of the past? It is important that it make up its mind quickly about how it is going to handle the composite dialogue. Foreign Minister Natwar Singh's disastrously unimpressive outing in BBC's 'Hardtalk India' on 11 June 2004 made it clear that the ruling coalition had not yet decided how to handle Pakistan after BJP. The truth is that it is the Congress Party which has to make up its mind; most of the smaller partners in the coalition are either too regional to care or already too left of the big party with regard to relations with Pakistan. The party must consider that the reward for offering a soft front to Pakistan and making unilateral concessions on the marginal but high-profile issues like the Baglihar Dam, is a long-drawn-out discussion on Kashmir at the official level without Islamabad getting jumpy over it. The big gestures that might follow will disarm Pakistan, especially in its current mode of 'economic imagination' after a period of 'jihad fantasy', that is, switching from using the collective imagination based on conquest through jihad to using it to create an economically viable Pakistan that can actually compete with India. Both kinds of imagination spring from Pakistan's realisation of its geopolitical location.

From Jihad to Economic Imagination
If Pakistan can embark on the building of another deep-sea port at Gwadar while its two Karachi ports are under-utilised, one can gauge the intensity of its 'economic imagination' behind the Iranian gas pipeline project. It realises that in many ways, and in particular in terms of finances, the pipeline would be more feasible. While Gwadar relies on a number of accounting variables, the 'transit fee' from the pipeline has a way of appealing directly to the mind in Islamabad and the general Muslim imagination. A go-ahead from New Delhi will have an incalculably positive effect on the tenor of composite talks. After that Pakistan will have to concentrate its mind more on the internal transformation required in Balochistan than on Kashmir.

There was a time in the mid-1990s when Pakistan too thought that the pipeline could be 'milked'. It then supposedly had the upper hand in Kashmir and its hawks used the gas-into-bullets argument, that is, 'if gas is supplied to India, its economy will boom and allow it to buy more bullets with which to kill the Kashmiris'. But the Indian economy boomed thereafter and the areas of boom required energy that India's heavily subsidised power sector simply could not supply. At the same time, Pakistan had come under pressure from dubious contracts made by a Pakistan People’s Party (PPP) government with foreign power supplying companies. The power tariffs were hiked up on top of excess capacity. India and Pakistan thought for some time that they could trade in electricity, but political hurdles came in the way and no deal could be made. Now in 2004 the Iranian project has gained economic salience as oil prices touch the US$ 40 mark in the international market. India and Pakistan both need to increase their power generation and to start producing electricity through gas-fired plants.

The economists in India say that there is no alternative to the Iranian gas pipeline even if somehow New Delhi convinces everyone that Pakistan will shoot itself in the foot and turn off the gas to India in times of Indo-Pak confrontation. (Another report also proved that India would not be really hurt if Pakistan did actually turn off the gas). India needs gas in the western part of its territory where the load-shedding routine has grown over the years. The only gas available to it is located in the eastern part of Bangladesh, which would have to be piped across a difficult terrain equally not secure against terrorist attacks of the sort feared in the case of Pakistan15. As India weighs its options, it becomes more and more convinced that the over-land Iranian pipeline would be more