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.