Pakistan has decided to increase its import of electricity to 70 Megawatt (MW) from Iran for Gwadar Port. The country had previously also decided to import additional power from Iran; however, the plan had come to a halt due to the sanctions placed by the United States (US) on Iran.
The decision, to import more power, was made to meet the immediate needs of Gwadar port for the China-Pakistan Economic Corridor (CPEC). On the other hand, China is also setting up a 300MW coal-fired power plant at Gawadar. However, the new arrangement between Pakistan and Iran will act as a buffer in case the Chinese coal-fired power plant suffers a delay in commissioning.
The decision to import more power from Iran was taken by the Cabinet Committee on CPEC (CCoCPEC). The CCoCPEC directed the Quetta Electric Supply Company (Qesco) to finalise procurement for laying a transmission line to supply power to Gwadar and complete the project by March 2023.
Pakistan is already importing some electricity from Iran but the US sanctions against Tehran creates hurdles in making proper payments for the import, prompting Pakistan to opt for a barter agreement for the deal.
