Pakistan asks Iran to normalize power supply to Balochistan

This photograph taken on April 13, 2016, shows a general view of the dockside at the port of Gwadar, some 700kms west of Karachi, Pakistan. (AFP/File)
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Updated 30 July 2021
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Pakistan asks Iran to normalize power supply to Balochistan

  • Power shortfalls in Iran have led to loadshedding in Gwadar, Turbat, Makran regions, Pakistani energy minister says
  • Pakistan says work in progress to connect these areas to national grid, project will be completed within two years

KARACHI: Pakistan’s southwestern coastal region in Balochistan has been facing prolonged power outages for over three weeks, in part due to a drastic reduction of power supply from Iran, a senior official said on Thursday, while the energy minister said Pakistan had requested Iran to normalize power supply to Balochistan.
Iran and Pakistan signed an agreement in 2003 under which Iran had to daily supply 35 megawatts to Balochistan’s coastal belt. In 2011, the agreement was extended, and Iran was asked to increase the capacity to 70 megawatts.
Five years later, when construction work in the deep-sea port of Gwadar gained momentum, 30 megawatts were added to the power supply and Iran has since been selling 100 megawatts to Pakistan to light up its coastal areas.
The Iranian embassy in Islamabad and its consulate in Karachi did not respond to Arab News requests for a comment.
“Power shortfalls in Iran have led to load shedding in our Gwadar, Turbat & Makraan regions. These areas are not connected to the national grid & dependant upon Iranian power supply. We have taken up the issue with the Iranian govt and requested them to normalize power supply,” Pakistan’s energy minister Hammad Azhar said on Twitter.

“Work is also in progress on connecting these areas with the national grid. This involves laying transmission lines for hundreds of kms. This project will be completed within 2 years,” Azhar added.

“Pakistan’s energy minister Hammad Azhar took up the issue with the Iranian ambassador today [Thursday], urging him to take necessary steps to ensure uninterrupted power supply at the earliest,” Zafar Yab Khan, a power division spokesperson, told Arab News. “The Iranian envoy assured him to restore the electricity, saying the government in his country was working to fix the problem in the border areas.”
According to Muhammad Afzal, a spokesperson of the Quetta Electric Supply Company, the country is also purchasing four megawatts from Iran for the border towns of Taftan and Mashkel.
“Iran cut down the electrical supply from 100 to 10 megawatts on July 6 without prior warning,” said Afzal. “These 10 megawatts cannot be provided to people since we use them to protect our valuable electricity installations and equipment.”
Senator Ahmed Ali Ahmedzai, who raised the issue of power outages during a recent meeting of a Senate standing committee, said electricity breakdowns had become common in the last few years.
“My colleagues and I have raised the issue in the standing committee meeting since we are facing a serious problem in Makran district which solely relies on Iranian power supply,” he told Arab News.
Officials say the problem began earlier this month.


Saudi Arabia leads Pakistan’s December remittances as inflows rise 16.5%

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Saudi Arabia leads Pakistan’s December remittances as inflows rise 16.5%

  • Remittances reach $3.6bn in December, central bank says
  • Flows from Gulf countries remain backbone of Pakistan’s external financing

KARACHI: Workers’ remittances to Pakistan rose sharply in December with inflows led by Saudi Arabia, according to State Bank of Pakistan data released on Friday, providing critical support to the country’s foreign exchange reserves and balance of payments. 

Remittances, a key source of hard currency for Pakistan, have remained resilient despite global economic uncertainty, helping cushion the country’s current account, support the rupee and stabilize foreign exchange reserves at a time when Islamabad remains under an International Monetary Fund (IMF) bailout program.

According to the State Bank of Pakistan’s official data, workers’ remittances reached a record $38.3 billion in fiscal year 2024-25 (July 2024–June 2025), up from about $30.3 billion the year before, reflecting strong labor migration to Gulf countries and improved formal banking channels. Economists say remittances are especially vital for Pakistan because they finance imports, support household consumption and reduce reliance on external borrowing.

“Workers’ remittances recorded an inflow of $ 3.6 billion during December 2025,” the central bank said in a statement.

“In terms of growth, remittances increased by 16.5 and 12.6% on y/y and m/m basis respectively.”

On a cumulative basis, remittances also posted solid growth in the current fiscal year.

“Cumulatively, with an inflow of $ 19.7 billion, workers’ remittances increased by 10.6% during H1FY26 compared to $ 17.8 billion received during the same period last year,” the statement said.

Saudi Arabia remained the single largest source of inflows in December with $813.1 million, followed by the United Arab Emirates at $726.1 million, the United Kingdom at $559.7 million and the United States at $301.7 million, according to the central bank.

Millions of Pakistanis work abroad, particularly in Saudi Arabia and the United Arab Emirates, sending money home to support families and local economies. The government and central bank have encouraged the use of formal channels in recent years, helping improve transparency and sustain inflows.