Obstacles Hinder Progress of Iran-Pakistan Gas Pipeline

According to a survey by the British Chambers of Commerce (BCC), the shipping costs from Asia to Europe have surged by up to 300% for certain businesses, while logistical delays have extended delivery times by three to four weeks. Such delays are causing cashflow challenges and shortages of components on production lines, impacting the economy at large.

The Houthi rebels, backed by Iran and controlling significant parts of north-western Yemen, have been targeting merchant vessels in the region since November. They claim the actions are in solidarity with Palestinians amid the conflict between Israel and Hamas in Gaza.

In response to the disruptions, the US and the UK have conducted airstrikes against 18 Houthitargets in Yemen over the weekend, including weapons storage facilities. However, despite the efforts, the disruption persists with no sign of abating.

William Bain, the head of trade policy at the lobby group, is urging the government to provide support for exporters in the upcoming budget, citing weak global demand and rising costs.

“There has been spare capacity in the shipping freight industry to respond to the difficulties, which has bought us some time. And recent [government] data also indicates the impact has yet to filter through to the UK economy, with inflation holding steady in January,” Bain said.

Furthermore, disruptions at the Suez Canal have forced shipments from China to Europe to take longer routes around Africa, doubling shipping costs since December. Issues at the Panama Canal, stemming from low rainfall, have also led to restrictions on traffic passing through its locks, exacerbating the challenges faced by businesses.

Mohammad Ali Jazayeri, the former representative of Khamenei in Khuzestan, admitted there is potential risk of assassination if the identity is revealed amid the country's worst civil unrest since the founding of the Islamic Republic in 1979.

On Wednesday, an official disclosed that President Ebrahim Raisi is one of three individuals designated by Supreme Leader Ali Khamenei to select the future leader of the Islamic Republic. Hassan Ameli, an Assembly of Experts member, confirmed Raisi's inclusion in the committee tasked with the decision, further solidifying Khamenei's confidence in Raisi's future role.

With Raisi initially the sole candidate from South Khorasan Province in the March 1 Assembly of Experts elections, the addition of a second candidate suggests formalities in the election process. However, questions remain regarding the Assembly of Experts' role in selecting the successor, as the committee of three is primarily tasked with this responsibility.

Following Ali Khamenei's tenure, an election for Iran's third Supreme Leader is slated. Succession to Khamenei has long been a sensitive issue in Iran. The Assembly of Experts holds the constitutional duty of selecting the next leader.

Khamenei has not publicly addressed his replacement. According to Iran's Constitution, the Assembly of Experts must convene to appoint a successor if the incumbent Supreme Leader dies or is removed. A Provisional Leadership Council, comprising the President, Chief Justice, and a cleric from the Guardian Council chosen by the Expediency Discernment Council, assumes leadership duties until a permanent successor is chosen.

Hossein Amir-Abdollahian's being given a platform amid the worst rights abuses since the Islamic Republic was founded in 1979, has led to criticism of the rights body with many activists boycotting events for which he is scheduled to attend, and calling for those attending to leave on his planned address.

Ladan Boroumand, an Iranian human rights activist and co-founder of the Abdorrahman Boroumand Foundation, said, "You can't stand still and listen to [the] torrents of lies he will unleash to fill [the] UN Human Rights' Council with an abominable alternative reality."

Iranian rights activist Nazanin Boniadi also urged US officials to boycott the session.

Iran is one of the few countries worldwide for which the UN Human Rights Council has appointed a special rapporteur. However, in November, widespread criticism ensued when the presidency of the two-day UN Human Rights Council Social Forum was handed over to the ambassador of Iran.

Iran has a history marred by severe human rights violations including crackdowns on political dissent, arbitrary arrests, torture, and executions. Religious and ethnic minorities, as well as women and LGBTQ+ people, face ongoing discrimination and persecution.

Freedom of expression and assembly are heavily restricted, with journalists, activists, and peaceful protestors frequently targeted. The regime's use of force to suppress protests and dissent has led to hundreds of deaths and injuries.

A former Iranian minister said the government’s recent deals with Chinese companies to build residential units in the capital are an "insult to Iran's engineering community" while the local economy is in freefall.

“We have given China privileges that are unprecedented in our country,” said Ahmad Khorram, former Roads and Transportation Minister under President Mohammad Khatami, in an interview with Jamaran News website.

Earlier this month, Tehran’s municipality announced that China will soon start building housing units in the capital. Mayor Alireza Zakani said several contracts have been signed with Chinese companies to revamp the capital’s infrastructure, including construction and transportation projects, at the expense of local businesses amidst a crippling economic crisis. 

According to Khorram, such decisions are like “punching Iranian people in the face” and do not serve their interests. “Our private-sector companies are much smarter and much more specialized than the Chinese ones … If they [Tehran’s municipality officials] give this concession to Iranian contractors, they will run with enthusiasm to get the project off the ground.”

Lambasting the close ties between Tehran and Beijing, the reformist politician stressed that China has undertaken the projects in return for buying Iran’s sanctioned oil 30 percent below the global price.

“The 30 percent oil money they don’t pay is all profit for them. For 25 or 30 percent of the rest of the oil money, they export goods to Iran, and by giving us goods, they make more than 50% profit,” he pointed out.

According to reports, China’s importation of oil from Iran increased by 60 percent in 2023, with Tehran selling 90 percent of its oil to Beijing. International tanker tracking companies say a huge amount of Iranian oil is sold to China via middlemen and brokers and by ship-to-ship transfers which take place in international waters. The cargoes are mostly rebranded as Malaysian oil but apparently Malaysia does not interfere.

Khorram further noted that building housing units will also guarantee a profit of over 100 percent for the Chinese companies. According to the former minister, Tehran provides Beijing with all these privileges to guarantee its support in the UN Security Council.

Both China and Russia have collaborated with the US over banning Iran’s nuclear program and were the first countries to back the Security Council’s resolutions against Iran, he went on to say.

Earlier in February, economic journalist Reza Gheibi told Iran International that Chinese encroachment into Iran's construction sector would have adverse effects related to opacity in the financial details of the scheme and its impact on local companies. There has been no word from the Chinese side confirming such a deal.

Tehran grapples with severe housing and transportation challenges, characterized by exorbitant real estate prices that are beyond the means of ordinary Iranians, who can barely afford rent.

According to Iran's leading economic daily Donyaye Eqtesad (World of Economy), owning a home in the Iranian capital Tehran has become virtually impossible while key indicators of quality of life are also in decline. The average time people need to save money to be able to buy a residence in Tehran has increased to a staggering 112 years, from about 22 years in 2005, the report added.

This comes as Australian Foreign Minister Penny Wong earlier urged university leaders to halt joint projects with Iranian entities due to concerns over human rights abuses in Iran.

“I urge you to join with the Government to put on hold existing cooperation with Iranian entities, including … universities, and to refrain from any proposed new engagement,” Wong wrote.

While some collaborations focus on benign subjects like cancer research and renewable energy, others delve into critical technologies such as artificial intelligence and biotechnology, raising fears of potential military and surveillance applications in repressive regimes, says a report published by The Guardian.

The Iranian government's tight control over academic direction and research priorities, particularly through entities like the Islamic Revolutionary Guard Corps (IRGC), exacerbates such concerns.

Rana Dadpour, a former Iranian university teacher turned migration researcher at James Cook University, highlighted the state's direct influence on research agendas noting potential implications for surveillance and military purposes. Despite the warnings and insights, the extent of Australian university leaders' compliance with the government's request remains undisclosed.

“They have direct control over academic direction and research priorities,” she told the Guardian. She also added that some research areas would be directed by Iran’s Islamic Revolutionary Guard Corps (IRGC) and could be used for “surveillance or military purposes”.