ISLAMABAD: The State Bank of Pakistan has so far declined to transfer $45 million to an Iranian firm and as a result the procurement of 13 heavy power transformers, with an installed capacity of 500MW, has been held in abeyance.

The request was earlier made by the Ministry of Water and Power in a bid to purchase the power transformers which would help upgrade the old transmission system and also to deal with continuing tripping problems.

An official told DawnNews that last year, the National Transmission and Dispatch Company (NTDC) issued a tender for the purchase of these transformers.

An Iranian firm placed a low bid to obtain the tender.

An official at the power ministry, on condition of anonymity, said that the Iranian firm successfully arranged the transformers but the SBP has now refused to pay $45 million to the firm due to US sanctions on Iran.

He added that ongoing tripping of power would continue if the transformers are not purchased from the Iranian firm.

Sources also informed that payment for the import of 60MW of Iranian electricity has been stopped as it is feared that the power supply would remain suspended in the bordering areas of Balochistan.

The Ministry of Water and Power has recommended to the Finance Ministry to make the payments to Iran through barter trade.