Tehran, Islamabad Keen on 3,000 MW Deal

Tehran, Islamabad Keen on 3,000 MW DealTehran, Islamabad Keen on 3,000 MW Deal

Iran has expressed interest in providing 3,000 megawatts of electricity to Pakistan to tackle the country’s persistent power outages, according to sources familiar with the matter.

The transmission infrastructure development can cost $1.5 billion and the Iranian authorities have made the offer to a 26-member delegation from Lahore Chamber of Commerce and Industry, the sources told Business Recorder.

The delegation reportedly held business to business meetings with Tehran, Shiraz and Mashhad chambers of commerce and industries during its recent visit to Iran.

Sources also said President Hassan Rouhani, who is scheduled to visit Pakistan on March 25, is likely to offer electricity besides endorsing some of the recommendations compiled during the meetings in Iran. The delegation was also told that the Iranian leadership wants to enhance trade with Pakistan by up to $10 billion.

The report adds that Iran wants a number of steps to be taken by the Pakistani government, including completing the gas pipeline project on a priority basis. More steps were also discussed to enhance trade, including direct shipping between Iran and Pakistan, and opening banking channels to overcome smuggling that afflicts both the countries.

Three banks from Pakistan, namely Bank of Punjab, Bank Alfalah and Meezan Bank, are actively pursuing cooperation with the Iranian authorities. It was also decided that the Preferential Trade Agreement already signed several years ago between the two countries should be activated.