Pakistan, Iran to extend cooperation in water, power sector
By Saad Saud

ISLAMABAD—Pakistan and Iran have agreed to extend cooperation in water and power sectors and to establish a joint investment company to gain goals and objectives in this regard. Iran also offered to provide cheap electricity to Pakistan which could be expanded to India through Pakistan like gas pipeline agreement.
These were decided in a meeting between Iranian Ambassador in Pakistan, H.E Masha’allah Shakeri and Federal Minister for water and power, Mr. Liaquat Ali Jatoi who met the Minister in his office today. The regional and global situation along with bilateral trade relations particularly investment opportunities in power sector came under discussion in the meeting.
The Minister, while welcoming the Iranian Envoy said that Pakistan had a close brotherly relation with Iran and stressed the need for exchange of expertise to benefit each others. He said that the power sector was viable business as the growth in power had been witnessed as 10-12 % and informed that presently 16 Independent Power Producers (IPPs) are generating 6500 MW electricity in private sector under the Power Purchase Agreement which is a win-win situation for both Pakistan and the companies. He further informed that the procedure has been made so simplified which attracted foreign investment in power sector. He also apprised the Iranian side that the growing demand of electricity is 18000 MW while the existing availability of power is 13500 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 Ambassador of Iran appreciated the growing economic situation of Pakistan and offered investment in water and power sectors particularly construction of dams. He also suggested for establishment of joint investment company to look into the exchange of expertise to pave way for investment opportunity in water and power sectors. He offered sizeable investment in Hydro-power plants and expressed intention to finance power projects in Pakistan.
The Minister lauded the offer of the Iranian side and said that Pakistan has already signed agreement to purchase 25 MW electricity from Mund (Iran) and recently signed another agreement of 125 MW from Iran. He also assured his full support and assistance to facilitate Iranian investors to invest in water and power sectors in Pakistan. He also expressed that this meeting would further enhance the bilateral and trade relations between the two countries.