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Pakistan to buy more electricity from Iran amid worsening energy crisis

August 9, 2023 at 8:51 am

Pakistani Prime Minister Shahbaz Sharif and Iranian President Ibrahim Raisi attend opening ceremony of the free trade zone and electricity transmission line in the city of Pishin, on the Iran-Pakistan border on May 18, 2023 [Iranian Presidency/Handout/Anadolu Agency via Getty Images]

Pakistan will purchase more electricity from Iran, according to its Finance Ministry, amid the ongoing and worsening energy crisis afflicting the country.

In a statement issued yesterday, Pakistan’s Finance Ministry announced that “the Economic Coordination Committee (ECC) has considered a summary from the Ministry of Energy (power division) regarding a contract with Tavanir Iran for the purchase of 104 MW of electricity”. Electricity exported by Iran currently amounts to around 100 megawatts to areas on the Pakistani side of their common border, particularly during the period that started in January 2022 and is set to continue until the end of December 2024.

The purchase of more electricity will reportedly include a tariff for the additional supply of 100 MW through the Polan-Gabd Transmission Line on the Iran-Pakistan border until 31 December 2024, which had been agreed by Pakistani Prime Minister Shehbaz Sharif and Iranian President Ebrahim Raisinwhen they jointly inaugurated the line in May.

READ: Iran’s IRGC to work with Pakistan army on border security

The announcement to buy more electricity from Iran comes a day after reports revealed that Pakistan issued a force majeure notice to abandon the construction of its part of a major gas pipeline project with Iran, due to the pressure and threat of sanctions from the US on those who deal with Tehran.

The developments come amid Pakistan’s current and worsening energy crisis, which forces the nation of over 240 million people to experience regular blackouts lasting approximately 12 hours per day. That crisis makes the supply of gas and electricity a major priority for the Pakistani government, with Iran serving as a prominent supplier.