ISLAMABAD, May 21 Iran has allocated a separate fund for supplying 100MW electricity free of cost to Gwadar port.

“All ground work has been completed and the supply will start as soon as Pakistan completes work on its transmission lines,” Iranian Ambassador Mashaallah Shakeri said during a meeting with Communications Minister Dr Arbab Alamgir Khan here on Thursday.

Dr Arbab called for practical steps to implement an agreement signed by the two countries last year to start a bus service between Quetta and Mashhad.

He stressed the need for enhancing cooperation in various sectors of economy.

He said Pakistan was working to develop new communication links with Iran to boost bilateral trade.The minister said that a road connecting Iran through the Makran coastal highway would soon be completed “The opening of the new route will link Gwadar port with Iran's Chabahar port and provide economic benefit to the two countries.”

He expressed the hope that Iran would facilitate Pakistan's exports to Turkey and offered full cooperation to Iranian traders in getting access to Chinese markets.

The Iranian ambassador said his country shared Pakistan's desire to increase cooperation in various sectors. He said that Iran wanted to import citrus fruit and vegetables from Pakistan.

He said Iran would run a special train between Zahidan and Mashhad for passengers coming from Pakistan. He said his government was ready to offer Pakistan a soft loan for construction of Nushki-Dalbandin section on the Quetta-Taftan highway. He proposed the setting up of a joint Pakistan-Iran shipping company. The minister welcomed the proposal and said it would benefit shipping industries in both the countries.

The two sides agreed on the need for a meeting between communications ministers of the two countries to review progress on the issues. The minister said that a formal invitation for the meeting would soon be extended to Iran.

Communications secretary Sharif Ahmed, member finance Zafar Iqbal Gondal and member planning Raja Nowsherwan also attended the meeting.