Electricity supply to southwestern Balochistan: Pakistan owes USD12m to Iran’s power co, NA told

Pakistan has an unpaid balance of about USD12 million with Iran’s state electricity provider, Tavanir, for power delivered to southwestern Balochistan, Business Recorder reported, citing a written response to the National Assembly. Energy Minister Awais Leghari said imports can reach 204 megawatts under an arrangement dating to November 2002, which covers the Makran area, including Gwadar. The contract requires payment for 30 million kilowatt-hours each month regardless of how much electricity is used, and the arrears are being cleared in instalments.

The Central Power Purchasing Agency and Tavanir are parties to the deal, while Nepra sets the applicable tariffs. Qesco bills users across the connected locations, but power cuts persist because of combined technical and commercial losses, the minister said. Though Makran now has a link to Pakistan’s national grid, long transmission routes and voltage variation still constrain supply. A technical assessment of equipment to stabilise voltage, including a STATCOM, is due by September 2027; the agreement was extended for two years in December 2024.