ISLAMABAD: Pakistan signed an agreement with Iran on the import of 1000MW electricity on Thursday.

The agreement was signed between the Pakistani delegation, headed by Managing Director NTDCL Rasul Khan Mahsud and deputy Iranian Minister for Energy, Muhammad Behzad.

The spokesman of National Transmission and Despatch Company Limited (NTDCL) said in a statement that according to the agreement, 70 per cent of the funding for the project will be provided by the Iranian government whereas 30 per cent will be arranged by the Pakistan government.

The spokesman informed about the project that it will be completed in 3 years. As per the negotiations between the two delegations, the rate of electricity was finalized 8 cents per unit whereas in case of rise in the oil prices on the international market, a maximum of 11 cents will be charged.

The spokesman further said that the signing of 1000MW of electricity import from Iran is the outcome of Iranian President Mahmoud Ahmedinajad's last visit to Pakistan, where President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani had shown interest in importing power from Iran to mitigate the prevailing energy crisis in the country.

Federal Minister for Water and Power Syed Naveed Qamar, who made great efforts for dispatching a negotiation team to Iran for purchasing electricity, said that the government is taking all steps to facilitate the people of Pakistan.

With the import of electricity from Iran, Syed Naveed Qamar said that industrial, commercial and domestic consumers off the coast of Makran and Balochistan will also benefit and will increase economic development in the area.