Iran has offered Pakistan electricity agreement similar to India-Pakistan-Iran (IPI) gas pipeline project besides, agreeing to establish a joint investment company between the two countries.
This was communicated by the newly appointed Iranian Ambassador Masha'Allah Shakeri at a meeting with Water and Power Minister Liaquat Ali Jatoi here on Saturday. "Islamabad and Tehran have agreed to extend co-operation in water and power sectors and to establish a joint investment company, in addition to providing cheap electricity to Pakistan which could be extended to India through Pakistan like gas pipeline agreement," said an official statement issued after the meeting.
The regional and global situation along with bilateral trade relations particularly investment opportunities in power sector came under discussion. Jatoi while welcoming the envoy said that Pakistan has close brotherly relation with Iran and stressed the need for the exchange of expertise for mutual benefit.
He said the investment in the power sector seems more viable as 10-12 percent growth has been witnessed in power generation and at present, 16 independent power producers (IPPs) are generating 6,500 mw electricity in the private sector under the power purchase agreement (PPA), which is a win-win situation for both Pakistan and the companies.
Elaborating electricity demand-supply position, the minister apprised the Iranian side that the growing demand for electricity is 18,000 mw against existing availability of 13,500 mw.
He invited the Iranian government to come forward and participate in the mega hydro-power projects through international competitive bidding (ICB), including Basha dam. The Iranian envoy appreciated the government's economic policies and showed interest to finance mega water and power sector projects.
The minister lauded the offer of the Iranian side, saying that Pakistan has already signed an agreement to purchase 25 mw electricity from Mund (Iran) and recently signed another agreement of 125 mw. It is the first call of Iranian envoy to Pakistan after assuming his responsibility in Islamabad.