ISLAMABAD, Nov 4: Iran has offered to provide cheap electricity to Pakistan that could also be extended to India like the proposed Iran-Pakistan-India (IPI) gas pipeline. The offer was made by Iranian Ambassador in Pakistan Masha Allah Shakeri in his meeting with federal Minister for Water and Power Liaquat Ali Jatoi here on Saturday.

Both the countries agreed to extend cooperation in water and power sectors and to establish a joint investment company for achieving the objectives in the near future.

Regional and global situation along with bilateral trade relations particularly investment opportunities in power sector came under discussion in the meeting. The law and order situation was also discussed.

Mr Jatoi, while welcoming the Iranian envoy, said that Pakistan enjoyed brotherly relations with Iran and stressed the need for exchange of expertise.

He said that the power sector was a viable business as the growth in the country’s power sector had been 10-12 per cent and presently 16 independent power producers (IPPs) were generating 6,500 MW electricity under the power purchase agreement.

The minister said that investment procedure in the power sector had been simplified which attracted foreign investment in power sector. He said that the demand for electricity had crossed 18,000 MW while the existing availability of power was 13,500 MW.

Mr Jatoi invited the Iranian government to come forward and participate in the mega hydro power projects through International Competitive Bidding (ICB), including the Basha dam project.

The Iranian ambassador appreciated the growing economic development of Pakistan and offered Iranian investment in water and power sectors, particularly in the dams’ construction.

He also suggested the establishment of a joint investment company to look into the exchange of expertise to pave way for investment opportunities in water and power sectors. He offered a sizeable investment in hydro-power plants and expressed his intention to finance power projects in Pakistan as well.

Mr Jatoi lauded the offer and said that Pakistan had already signed agreement to purchase 25 MW electricity from Mund (Iran) and recently signed another agreement for purchase of 125 MW from Iran.

The minister assured his full support and assistance to facilitate Iranian investors to invest in water and power sectors in Pakistan.

He said the Saturday’s meeting would further enhance bilateral and trade relations between the two countries.