30 May 2024
Tuesday 19 March 2019 - 14:43
Story Code : 342925

Pakistan seeking transactions with Iran in local currency

IRNA -- A Pakistani English news daily has reported that Pakistan is interested in importing additional 100MW of electricity from Iran using local currency for payments.

The News said in the report that due to the US sanctions on Iran, Pakistan has asked Iran to carve out a payment mechanism.

To this effect, Pakistan has raised some questions seeking answers from Iranian side for making the payment mechanism against additional import of 100MW of electricity, it said.

The report said under the proposed plan, the electricity transmission line will be laid from Polan a place at the Pakistan-Iran border down up to Gwadar for transmitting the additional 100MW of electricity. Both countries have already signed MoU for import of 100MW electricity.

We are already importing 104MW electricity at 7-8 cents per unit and against this import Pakistan needs to pay $121 million and to this effect Pakistan will pay in Pak rupees to Iran, a senior official of Power Division told The News.

Earlier an Iranian delegation led by Managing Director of Tavanir Company Ali Asghar Esmaielnia held two-day talks with top officials of Pakistans National Transmission Dispatch Company and Central Power Purchase Agency (CPPA).

The Iranian delegation also met top Minister for Power Omar Ayub Khan and Secretary Power Division Irfan Ali on March 4.

The official who remained part of the two-day talks with Iranian team said that Pakistan asked Iran to carve out the payment mechanism and then advance on building the infrastructure of transmission line for importing more 100MW electricity and to this effect, Pakistan has submitted its input and now Iranian side would come up with its response.

Currently Pakistan is importing 104MW power from Iran knowing the fact that the tariff agreement was expired in December, 2016, but Tavanir remained steadfast for supplying uninterrupted power supply to Pakistan.

It is pertinent to mention that Iran had already extended offer of exporting electricity of 3000MW to Pakistan.
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