Defiance; For now.

For almost an year, we in Pakistan have been told by the minister in charge of water and electricity that, among all possible measures to counter energy deficiency in Pakistan; Privately owned independent energy producers renting out electricity to our country is the most viable solution. Thanks to media and news coverage, people were also informed about the Chinese offer to own and supply entire country's electricity with a flat rate of 300 rupees per house. In the midst of all this, Iran made us an offer of cheap electricity, round about 2 rupees per unit. Still our dear minister was repeatedly quoted and heard directly by masses, laying stress to rental power projects. Despite some political pressure and other setbacks i am not sure, but couple of them have been put operational since Prime minister inaugurated one of these rental generators himself. Somewhere about 55 Megawatt of electricity each.

Meantime China recently has decided to move forward with an earlier deal to provide Pakistan with two nuclear reactors to address its energy deficiency.

That seem to have raised some eyebrows in the west. Specially United States, demanding clarification of the Nuclear Supplier Groups' member country; China. The 46-nation NSG, which governs the export of civilian nuclear transactions by its members, meets this week in New Zealand. That will be the test of nerves for diplomacy, since US has, in past, already assisted India after passing congressional amendments specifically made to find a way around nuclear supplier groups' guidelines.

This weekend, US envoy on his two day visit to Pakistan, said in a press conference facing media, that if Pakistan wishes to move ahead with the Iranian Gas pipeline deal, they can, since its their internal matter and US holds no reservations on the matter. In fact he said, we too are worried and are trying to assist Pakistan in addressing their energy crisis.

Next day he took a U turn and media reported Mr. Holbrook advising Pakistan to not to rush into the Gas deal with Iran, since US is considering to pass a congressional legislation forcing tougher sanctions on Iran.

Defying a warning from Washington, Pakistan's prime minister promised Tuesday to go ahead with a plan to import natural gas from Iran even if the U.S. levies additional sanctions against Iran.

Gilani said Pakistan would reconsider the deal if it violated U.N. sanctions, but the country was "not bound to follow" unilateral U.S. measures.

Iran which currently holds multi billion dollar deals with China, Russia, and numerous Middle eastern and Latin countries has vowed to learn to live with sanctions.

Russia's Foreign Ministry has already said that new U.N. sanctions against Tehran over its nuclear programme do not oblige Moscow to scrap a deal to deliver surface-to-air missiles to Iran.

Links between Iran and China centers on energy, through China’s requirement for Iranian oil, and Iran’s need for foreign expertise to develop its vast, but undeveloped reserves. Iran also requires petrol from Chinese petroleum companies as its own supplies remain inadequate. China has ensured that the UN sanctions passed have not affected its hydrocarbon trade with Iran.

In June last year, the China National Petroleum Corporation secured a US$4.7 billion deal to develop part of the South Pars gas field. In doing so, it replaced the French company Total as the main contractor after it dithered amid the growing controversy surrounding Iran. The field is, according to Iranian officials, due to produce an income of as much as $130bn per year, and it will further help China to secure its energy supplies.

Only last month Iran placed an order with China for six liquid natural gas tankers, each worth between $200m and $220m, to export liquified natural gas from its territory.

Bilateral trade between Iran and China, worth $27bn last year, is set to grow to $50bn by 2015, according to the Iran-China Joint Chamber of Commerce.

And on this Monday Venezuelan President Hugo Chavez officially inaugurated three dairy factories built by Iranian firms in Venezuela. Iran has planned and constructed 13 dairy factories in Venezuela that process 360 tons of milk per day. Iranian President Mahmoud Ahmadinejad and Venezuelan President Hugo Chavez signed a memorandum of understanding in Caracas in November 2009 that comprised 270 agreements on cooperation in the areas of agriculture, industry, technology, energy, fisheries, and housing.

I am not too confident about my Prime Minister's defiance at the moment. If in future he bows down to his friendly US pressure, and scraps the Iran Pakistan Gas pipeline deal, it would only hurt Pakistani Interest and won't cause Iran any wrinkles.