iran8217s nuclear program

Iran’s Nuclear Program: From American Partne…

By Ali Haider

Iran’s nuclear program has been frequently described as defiance of the West. But the history reveals a different picture. It appears paradoxical that the very infrastructure of the nuclear facilities in Iran was built under the patronage of the Americans during the Cold War period. The project, which initially symbolized cooperation between Washington and Tehran, became one of the most dangerous confrontations in international relations. This transformation demonstrates how alliances shift in geopolitics.

 

The roots of the Iranian nuclear program can be traced back to the Cold War period in which the United States and the USSR were locked in idealogical and geopolitical rivalry. In 1950s, when the two superpowers were trying to increase their sphere of influence on the planet by establishing new alliances, US President Dwight Eisenhower introduced the initiative “Atoms for Peace” in 1953. On surface level, the program was devoted to the peaceful use of nuclear energy, however, it fulfilled the geopolitical interests of Washington as well. Several countries, including Pakistan, India, Japan, South Korea, Turkey, and Iran get benefited from the program. Yet the degree of aid was dependent on the strategic significance of each country. Iran, under the rule of Shah Mohammad Reza Pahlavi, became one of Washington’s closest regional allies.

When Mohammad Mossadegh came to power in 1953, he nationalized the Iranian oil industry that ultimately affected British economic interests and aroused American fear that Iran would align with the Soviet Union. In order to save Iran from becoming a Soviet ally, the CIA, along with Britain’s MI6, undertook Operation Ajax, resulting in the ouster of Mossadegh and the restoration of power to the Shah.

Such close relations between the United States and Shah Reza Pahlavi facilitated the signing of a civil nuclear cooperation agreement in 1957. The United States helped establish the Tehran Research Reactor, aided Iran with highly-enriched uranium to be used as reactor fuel and provided training to Iranian scientists in American universities. At that time, the nuclear aspirations of Iran did not provoke any concerns in the global community due to the fact that the country was considered a loyal ally of the United States. The technology that is now considered a threat by USA, used to be advertised by Washington itself as a tool of development.

The situation changed drastically after the 1979 Islamic Revolution when Shah was overthrown and the Islamic Republic of Iran was created under Ayatollah Ruhollah Khomeini who pursued the agenda of anti-Americanism. Seizure of the US Embassy in Tehran and the resulting hostage crisis broke off diplomatic relations and transformed allies into bitter enemies. Initially, Iranian leadership suspended its nuclear program, and Khomeini showed religious concerns about it. However, soon the Iran-Iraq War changed the perspective of Iranian leaders.In the ensuing years, Iran started rebuilding its nuclear program with the help of Russia and China, while at the same time pursuing the development of uranium enrichment facilities independently. This dramatic reversal transformed Iran’s nuclear program from a symbol of strategic partnership into a source of deep geopolitical mistrust that continues to shape Western policy toward Tehran.

Matters came to a head in 2002, when the National Council of Resistance of Iran revealed the existence of two undeclared facilities, Natanz and Arak. Subsequent inspections of the sites by the International Atomic Energy Agency found no evidence of an active nuclear weapons program, but criticized Iran for not reporting certain nuclear activities before. This became the core of the conflict: the West demanded transparency from Iran, while Iran claimed that its rights were enshrined in the Nuclear Non-Proliferation Treaty. Gradually, the situation developed into an international crisis. In 2006, the IAEA referred the case of Iran to the UN Security Council, after which the UN imposed a series of sanctions on Iran for refusing to stop the enrichment program. The US and EU imposed sanctions on Iran and restricted its banking system and oil exports, these sanctions brought Iran’s economy to its knees, causing severe damage to its currency. However, unprecedented economic pressure did not cause Iran to abandon its enrichment program.The Iranian case demonstrates that technological capability alone is rarely the real source of international conflict; rather, it is the absence of trust and transparency that transforms civilian nuclear technology into a geopolitical crisis.

In 2015, the Joint Comprehensive Plan of Action was signed which was considered the most important non-proliferation deal in the modern world. Iran was willing to place strict limits on the enrichment of uranium, reduce its enriched uranium stocks, and make changes to its nuclear sites in return for the lifting of the sanctions. This deal proved that effective diplomacy can be used to manage the risk of nuclear proliferation instead of coercion. Nonetheless, this was short-lived. The success of the JCPOA, despite its eventual collapse, illustrated that diplomatic engagement can achieve outcomes that years of sanctions and pressure often fail to deliver.

In 2018, President Donald Trump left the Joint Comprehensive Plan of Action saying that the deal overlooked the ballistic missile program, activities in the region, and the sunset clauses. America re-imposed tough sanctions and put maximum pressure on Iran. This move did not make Iran sign another deal but led Iran to abandon all of its commitments step-by-step and expanded uranium enrichment to levels of up to 60%.

Indeed, the nuclear question is still relevant today. The program that was developed with the assistance of the US nearly seven decades ago has now become America’s major concern. Iran claims that its nuclear program is purely peaceful, whereas the US and its Western allies believe that increasing enrichment capacity of the country may pave the way for developing nuclear weapons. Sanctions could not prevent Iran from developing its nuclear capacities, whereas the JCPOA demonstrated that negotiation and transparency measures can be far more efficient in preventing proliferation than coercion.

The history of Iran’s nuclear program illustrates two important lessons. First, it is not the technology that causes conflict between states, but mistrust. Second, in order to ensure stability, the international community has to shift from retaliations and coercion to sustainable diplomatic efforts.

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If the payment is financed through higher consumer tariffs, ordinary electricity users subsidise battery owners. If financed through public resources, taxpayers assume another fiscal obligation. Unless the proposed payment reflects demonstrable savings through lower capacity utilisation, reduced reliance on expensive peaking generation, avoided transmission investments and lower fuel imports, it risks becoming another subsidy disguised as reform. The second issue concerns Pakistan’s peculiar electricity economics. The country simultaneously suffers from surplus installed generation capacity and shortages during particular hours of the day. Consumers continue paying enormous capacity charges even when power plants remain idle. Before introducing payments for battery discharge, policymakers should demonstrate whether distributed storage actually reduces these fixed obligations or merely shifts electricity from one time period to another while capacity payments continue unchanged. This distinction is fundamental. If batteries merely redistribute electricity without lowering total system costs, consumersmay simply end up paying twice: once for idle generating plants and again for battery incentives. PRIME’s analysis correctly highlights the dramatic increase in battery imports. Nevertheless, imports alone cannot determine public policy. Customs statistics reveal the volume of batteries entering Pakistan but not how they are ultimately deployed. Many imported batteries are likely destined for residential solar systems, telecommunications infrastructure, commercial backup systems, electric vehicles and industrial facilities rather than grid-support applications. Policy requires greater precision. Residential battery storage serving a single household differs fundamentally from utility-scale storage capable of providing ancillary grid services. The regulatory treatment, compensation mechanisms and operational obligations cannot be identical. Perhaps the most important omission concerns the electricity market itself. Time-of-Use pricing presupposes the existence of a reasonably competitive electricity market where prices reflect actual system conditions. Pakistan, however, continues to operate largely through administratively determined tariffs, long-term power purchase agreements and regulatory pricing decisions. Introducing another administratively determined premium without competitive price discovery risks creating fresh opportunities for regulatory arbitrage instead of improving market efficiency. The proposal also raises important questions of distributive justice. Battery storage remains concentrated among relatively affluent households and commercial consumers who have already invested in rooftop solar systems. Additional payments for exported electricity may transfer resources from ordinary grid-dependent consumers to wealthier “prosumers” capable of producing electricity themselves. A sound public policy must ask not only whether incentives improve efficiency but also who ultimately pays for them. Fiscal sustainability presents another challenge. Pakistan’s public finances remain under extraordinary pressure. Circular debt continues to impose significant costs upon the national exchequer while electricity subsidies consume scarce fiscal space. Every new incentive introduced into the power sector should be accompanied by transparent estimates of its medium-term fiscal consequences. Without such analysis, even economically desirable policies may produce unsustainable budgetary commitments. The environmental dimension deserves equal attention. Large-scale deployment of lithium-ion batteries inevitably raises questions concerning recycling, disposal, fire safety and hazardous waste management. Pakistan presently lacks a comprehensive legal and regulatory framework governing battery end-of-life management. Encouraging rapid battery adoption without simultaneously addressing environmental responsibilities merely postpones another policy problem for the future. Cybersecurity also enters the equation. As distributed storage becomes increasingly integrated with smart meters, digital communication systems and automated dispatch mechanisms, cybersecurity standards become an essential component of electricity regulation rather than an afterthought. The broader lesson extends beyond batteries. Pakistan’s remarkable solar revolution demonstrates that citizens and businesses are increasingly solving their own energy problems because the formal electricity system has become prohibitively expensive and unreliable. International observers have correctly described this transformation as one of the world’s most significant examples of consumer-led energy transition rather than state-led planning. Public policy should seek to complement—not constrain—this transition. However, complementing it

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