Pakistan, Iran eye expansion of 100 MW electricity supply arrangement

August 07, 2026 (MLN): Pakistan and Iran have agreed to deepen bilateral cooperation in the energy sector, with a second cross-border transmission line set to begin soon and consideration underway to expand the existing 100 MW electricity supply arrangement to meet future demand.

The understanding was reached at a meeting between Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari and the Ambassador of the Islamic Republic of Iran to Pakistan, Dr Reza Amiri Moghaddam, where both sides discussed avenues to strengthen ties in energy and other areas of mutual interest.

The Minister welcomed the Iranian delegation and reaffirmed Pakistan's commitment to enhancing its longstanding partnership with Iran, said a press release issued.

Ambassador Moghaddam thanked the government and people of Pakistan for their unwavering support during challenging times, describing the two countries as close neighbors with deep-rooted ties.

He pointed to ongoing cooperation through existing cross-border transmission infrastructure and said Pakistani energy institutions, including CPPA-G, QESCO, and NGC, would be invited to the upcoming session of the Pakistan-Iran Joint Commission in Tehran.

He also flagged potential for expanding cooperation in agriculture and food products, and expressed satisfaction with the existing electricity payment mechanism, appreciating Pakistan's track record of timely payments and highlighting the importance of regional connectivity.

Minister Leghari, for his part, stressed the longstanding brotherly relations between the two countries, observing that regional instability and recent conflicts have affected economies worldwide, with Pakistan itself facing the impact of rising global energy prices, particularly higher RLNG costs.

He reaffirmed that Pakistan desires peace and stability in the region and said its leadership continues to work closely with Iran's leadership in support of peaceful dialogue and resolution of regional challenges.

He appreciated Iran's uninterrupted electricity supply to Pakistan despite a difficult regional security environment and expressed interest in sending Pakistani technical experts to Iran to study how its power sector maintained grid stability under such conditions.

Turning to Gwadar, the Minister said the port city's development hinges on a reliable, uninterrupted electricity supply.

While imports from Iran have continued without interruption, he noted that Gwadar still faces network reliability challenges requiring further investment in transmission infrastructure, adding that Pakistan is also interested in local power generation in the city.

He said electricity imports from Iran will remain integral to Pakistan's long-term energy planning and may grow further as Gwadar's demand rises, and highlighted the importance of renewable energy investment, two-way electricity trade, and keeping power affordable for consumers. He accepted the Ambassador's invitation to the Joint Commission session.

Ambassador Moghaddam commended the leadership of Prime Minister Muhammad Shehbaz Sharif and Field Marshal Syed Asim Munir, saying their constructive engagement helped facilitate the peace talks held in Islamabad, and noted that Pakistan-Iran relations have reached an unprecedented level of mutual trust and cooperation.

He said bilateral trade is expected to touch around $4bn by the end of the year, described the two nations as bound by a unique, brotherly relationship, and said Iran made every effort to meet Pakistan's trade requirements despite disruptions to maritime routes.

He added that Iran is keen to route a significant share of its trade through Pakistani ports, for which closer energy-sector cooperation would be essential.

The meeting concluded with both sides reaffirming their commitment to strengthening cooperation in energy, trade, connectivity, and other areas of mutual interest, building on the longstanding friendship between the two countries.

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