Pakistan, Iran pledge deeper energy, trade partnership as bilateral ties gain momentum

Pakistan and Iran reaffirmed plans to deepen energy cooperation, including a second cross-border transmission line and possible higher imports, while boosting trade and connectivity via joint commission talks in Tehran.

  • Minister Leghari, Iranian envoy reaffirm commitment to expanding strategic cooperation
  • Second cross-border transmission line, higher power imports under consideration
  • Gwadar’s energy security, renewable investment and two-way electricity trade discussed
  • Iranian envoy invites Pakistani energy institutions to Joint Commission meeting in Tehran, reiterating bilateral trade to touch $4b by year-end
  • Ambassador lauds PM Shehbaz, Field Marshal Asim Munir for facilitating Islamabad peace talks

ISLAMABAD: Pakistan and Iran on Thursday reaffirmed their commitment to further deepening their longstanding bilateral partnership, with a renewed focus on expanding cooperation in the energy sector, enhancing regional connectivity, and boosting trade during a meeting between Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari and Iranian Ambassador to Pakistan Dr Reza Amiri Moghaddam.

The minister welcomed the Iranian delegation, led by Ambassador Dr Reza Amiri Moghaddam, and reiterated Pakistan’s resolve to strengthen its historic ties with the neighbouring country, according to a statement issued by the Power Division.

Ambassador Dr Reza Amiri Moghaddam expressed gratitude for the unwavering support extended by the Government and the people of Pakistan during challenging times.

Describing Pakistan and Iran as close neighbours bound by deep-rooted historical, cultural and brotherly ties, he highlighted the ongoing cooperation in the energy sector, including the existing cross-border electricity transmission infrastructure. He said work on a second transmission line was expected to begin soon and noted that expanding the existing 100-megawatt electricity supply arrangement was under consideration to meet future energy requirements.

The ambassador underscored the importance of strengthening regional connectivity and announced that Pakistani energy institutions, including the Central Power Purchasing Agency-Guarantee (CPPA-G), Quetta Electric Supply Company (QESCO) and National Grid Company (NGC), would be invited to participate in the upcoming session of the Pakistan-Iran Joint Commission in Tehran.

He also stressed the vast potential for broadening bilateral cooperation in agriculture and food products.

Appreciating Pakistan’s commitment to timely payments, Ambassador Moghaddam expressed satisfaction with the existing electricity payment mechanism between the two countries.

During the meeting, Federal Minister Sardar Awais Ahmad Khan Leghari emphasized the enduring brotherly relations between Pakistan and Iran, observing that no country remains immune to regional instability and that the repercussions of recent conflicts have affected economies across the world.

He noted that Pakistan had also felt the impact of rising global energy prices, particularly due to higher costs of Re-gasified Liquefied Natural Gas (RLNG). Reaffirming Pakistan’s desire for lasting regional peace and stability, the minister said the country’s leadership continued to work closely with the Iranian leadership in support of peaceful dialogue and the resolution of regional challenges.

The minister appreciated Iran’s uninterrupted electricity supply to Pakistan despite the prevailing regional security environment and expressed interest in sending Pakistani technical experts to Iran to study how the Iranian power sector had successfully maintained the stability and resilience of its national grid under such challenging circumstances.

Highlighting the strategic importance of Gwadar, Sardar Awais Ahmad Khan Leghari said the port city’s continued development depended on a reliable and uninterrupted electricity supply. While electricity imports from Iran had continued without interruption, he observed that Gwadar still faced network reliability challenges that required further investment in transmission infrastructure.

He added that Pakistan was also interested in investing in local power generation projects in Gwadar.

The minister further said electricity imports from Iran would remain an integral part of Pakistan’s long-term energy planning and could increase as Gwadar’s electricity demand continued to grow.

Looking ahead, he stressed the importance of greater investment in renewable energy, the development of two-way electricity trade between the two neighbouring countries, and ensuring affordable electricity for consumers.

Minister Leghari also accepted the invitation extended by the Iranian ambassador to visit Iran.

During the meeting, Ambassador Dr Reza Amiri Moghaddam commended the leadership and diplomatic efforts of Prime Minister Muhammad Shehbaz Sharif and Field Marshal Syed Asim Munir, saying their constructive engagement had played a significant role in facilitating the peace talks held in Islamabad.

He observed that Pakistan-Iran relations had reached an unprecedented level of mutual trust and cooperation.

The ambassador further shared that bilateral trade was expected to reach around USD 4 billion by the end of the year, describing Pakistan and Iran as brotherly nations bound by a unique relationship that should continue to grow stronger.

Despite disruptions to maritime routes, he noted, Iran had made every possible effort to ensure that Pakistan’s trade requirements were met. He also expressed Tehran’s interest in routing a significant portion of its trade through Pakistani ports, emphasizing that closer cooperation in energy, connectivity and other sectors would be vital to achieving that shared objective.

The meeting concluded with both sides reaffirming their commitment to further strengthening cooperation in energy, trade, connectivity and other areas of mutual interest, while building upon the longstanding friendship and strategic partnership between Pakistan and Iran.

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