Pakistan inks agreement to import 1000MW of electricity from Iran

By PPI
Published: June 1, 2012

Iran will fund 70% of the project, Pakistan 30%.

ISLAMABAD: Government of Pakistan on Thursday signed an agreement with Iran for the import of 1000 MW electricity.

The agreement was signed between a delegation of Pakistan, headed by Managing Director NTDCL Rasul Khan Mahsud and deputy Iranian Minister for Energy, Muhammad Behzad.

A spokesperson for the National Transmission and Despatch Company Limited (NTDCL) said in a statement that according to the agreement the 70 per cent funding for the project will be provided by the Iranian government whereas 30 per cent will be arranged by the government of Pakistan.

Talking about the project, the spokesperson said that it will be completed in three years. As per the negotiations between delegations of both countries, the rate of electricity was finalised at 8 cents per unit whereas in case of a rise in oil prices in the international market, a maximum tariff of 11 cents will be charged.

Meanwhile, the Federal Minister for Water and Power Naveed Qamar, who had dispatched a negotiation team to Iran for purchasing electricity, said that Government is taking all necessary steps to facilitate the people of Pakistan. With the import of electricity from Iran, Qamar, said the industrial, commercial and domestic consumers based in Makran coastal belt and Balochistan will also be able to take benefit from it.

Pakistan has been under pressure from the US to desist entering into energy related deals with Iran.

Reader Comments (8)

  • Ali Ahsan
    Jun 1, 2012 - 12:40AM

    and Baloch separatist militants will bomb it, claiming its “oppression and exploitation of Baloch nation” and they will get ‘Azad Balochistan’ by keeping their people in the dark and deprived.

    makes sense.

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  • Mirza
    Jun 1, 2012 - 1:07AM

    Kudos to the elected govt to do what is good for Pakistan and its people. We should be more goal and results oriented and take care of our own needs no matter what. Put your money where your mouth is.

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  • azmat khan
    Jun 1, 2012 - 1:19AM

    It is a good news. Well done government.

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  • John B
    Jun 1, 2012 - 1:26AM

    I think the current international rate is 3 cents. 8 cents seem bit high to me.

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  • ADNAN
    Jun 1, 2012 - 4:38AM

    It is really good news but the price is really high maybe somebody have 50 percent commission in it, i think, if they pay to the local power companies lesser price then we don’t have this problem, and i think baloch will welcome it too, who will not i think they are on the pay role of.. you know who!.

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  • David Smith
    Jun 1, 2012 - 12:13PM

    3 years is some time to go. During a time frame like this, it would be more useful if Pakistan built power structures (hydro, thermal) inside Pakistan. It would be cheaper in the long run and be less prone to security threats, changes in the international situation visavis Iran etc.

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  • Kashi
    Jun 2, 2012 - 3:58PM

    its a good step to make business deals with Iran, Govt. should also made deals for Oil with Iran.

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  • buji
    Jun 2, 2012 - 5:52PM

    @John B:
    the current NYMEX futures price is USD 84.25 per Mwh, which equals 8.425 cents in kwh (unit of measure used in Pakistan). Currently Pakistan’s average production cost with the present energy mix is over 12 cents. so its much cheaper than producing electricity via fossil fuel based power project. Hydro-electric is the cheapest to produce at less than 3 cents. but the projects will take a long time to complete

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