The Iran-Pakistan gas pipeline is more of a political move rather than a step of economic development.

The deal was signed by Zardari, Shiite President of Pakistan to cook a trouble for the next government, which it can cash in the days ahead. The move would more suit the government if predictions about Pakistan Muslim League-Nawaz coming into power in the next general elections come true. The new government, which will face serious economic problems, would risk relations with the United States, the international community and the Arab states if it goes head with the project. If not, Pakistan Peoples Party will obtain an issue to exploit and tell people that while its government inaugurated the project, the new government failed to complete it. The party has thus put such a burden on shoulders of the new government, which it itself could not carry for the last five years. Saudis have never liked the Shi'a-dominated Pakistan People Party and complain over Pakistan President Asif Ali Zardari's "alleged corruption and incompetence" and because of his strategic friendly ties with Iran. Rivalries between Iranians and the Arabs date back to the pre-historic Achaemenid and Sassanian dynasties of Iran. Both ethic rivals have always tried to edge out each other from the regional map of power game. This rivalry is persistent even today and neither Arabs nor Ajams [Iranians] are ready to leave ground to each other in the region. During the Afghan war, and more so after emergence of Khomeini factor in regional politics, this rivalry took a new turn and signs of the war of interests between the two sides can be vividly seen in Pakistan and Afghanistan. Apart from Saudi Arabia, other Arab states are also equally contributing to this conflict and one of its manifest shapes is the tension between Iran and the United Arab Emirates over Abu Musa and two other islands in Hormuz Straight. A heated discussion took place between the Former Iranian Foreign Minister Mottaki and Saudi King Abdullah noted Iran's interference in Arab affairs." When challenged by the King on Iranian meddling in Hamas affairs, Mottaki apparently protested that "these are Muslims." "No, Arabs" countered the King, "You as Persians have no business meddling in Arab matters." The King said the Iranians wanted to improve relations and that he responded by giving Mottaki an ultimatum. "I will give you one year" (to improve ties), "after that, it will be the end." In a meeting with White House counterterrorism adviser John O. Brennan, Saudi King Abdullah stated that "some say the U.S. invasion handed Iraq to Iran on a silver platter; this after we fought Saddam Hussein." In fact the so called war on weapons of mass destruction in Iraq was backed by Iranians, so they can bring and develop shia government into the country. An April 2009 cable claims that United Arab Emirates Foreign Minister Sheikh Abdullah bin Zayed stated there is "Saudi concern of a [Shi'a] triangle in the region between Iran, the Maliki government in Iraq, and Pakistan under Zardari." The Saudis have traditionally viewed Iraq as a Sunni-dominated bulwark against the spread of Shiism and Iranian political influence. In the aftermath of bombings in predominantly Shia areas across the country in 2009 that killed dozens, PM Maliki pointed publicly to one such statement, made by a Saudi imam in May, and stated, "We have observed that many governments have been suspiciously silent on the fatwa provoking the killing of Shiites."

Saudi Arabia, in an effort to persuade Pakistan to abandon the Iran gas pipeline and electricity/oil import deals, was reported to have offered an alternative package to meet its growing energy needs. n addition, the Arab kingdom was also said to have offered a loan and oil facility to bail Pakistan out of its financial and energy crises. Despite the US pressure on Pakistan to abandon IP gas pipeline Pakistan join hands with Iran in this deal. US wanted Pakistan to join TAPI (Turkmenistan, Afghanistan, Pakistan and India) pipeline project. But energy starved Pakistan in the government of Shiite president signs the deal with Iran through which Iran will export Shiaism to Pakistan through its culture and tradition. However, while these international factors can be rubbished as hypothetical, there are certain palpable threats on the ground, which are hampering execution of the project. For example, the Shiite-Sunni rivalries in Pakistan would never allow any such transaction with Iran. How will Lashkar-e Jhangvi and other Sunni extremist groups allow Pakistan to enter such deals with Iran? If these groups cannot tolerate Shiite pilgrims traveling to Iran, how will they allow an Iranian company to lay the pipeline in Pakistan? Let alone the Pakistani fanatic groups, the Iranian Jundullah outfit will also not let the project go scot-free. Baloch militancy is also a potential threat to the pipeline project because Baloch separatist groups would never allow execution of any economic undertaking in Baloch areas, which can benefit Punjab. Three Chinese engineers were killed in a massive bomb explosion the day Gwadar Deep Sea Port was completed in 2004, which was a clear message to foreign investors that Baloch militants are averse to such development activity in their area. Besides, if the government claims that RAW is involved in terrorist activities in Balochistan, then how the enemy would allow Pakistan to go ahead with such a gigantic project.