Pakistan and Iran have agreed in principle to extend their cross-border electricity sale agreement, setting a new tariff band between 7.7 and 11.45 US cents per kilowatt-hour (kWh) after successful negotiations between their respective power sector entities, Business Recorder reported.
Officials said the revised understanding, captured in Amendment No 10 to the original 2002 power purchase contract, is expected to be placed before the Economic Coordination Committee (ECC) of the Cabinet for approval on Tuesday (today).
The previous electricity sale arrangement between Central Power Purchasing Agency–Guaranteed (CPPA-G)/NTDC and Iran’s state-owned utility, M/s Tavanir, expired on December 31, 2024. The Prime Minister’s Office had separately sought an update on renewal of the contract, given its importance for power supply in border districts.
Pakistan currently imports about 100MW of electricity from Iran to serve adjoining areas of Balochistan, with payments historically routed through informal or barter-based arrangements. The import volume is around 18 million units annually. The current delivered price of Iranian power to Balochistan exceeds Rs27 per unit, higher than the cost of generation from imported coal and RLNG-based plants.
