Pakistan says will approach Iran to purchase additional 100MW daily electricity for Gwadar 

This photo shows a view of marine drive of Gwadar, Pakistan. (Photo courtesy: @ImranGhazaliPK/Twitter)
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Updated 25 May 2022
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Pakistan says will approach Iran to purchase additional 100MW daily electricity for Gwadar 

  • Iran has been supplying electricity to Gwadar, Kech and Panjgur districts in southwestern Balochistan since 1999
  • Balochistan is Pakistan’s most undeveloped and neglected region, Gwadar is not connected to the national grid

GWADAR: A federal government adviser said on Tuesday Pakistan had directed authorities in the southwestern Balochistan province as well as the power division of the country to initiate talks with Iran on the purchase of an additional 100 megawatts of electricity to fulfill the daily power needs of Gwadar, a port city at the center of the $65 billion China-Pakistan Economic Corridor (CPEC).

Balochistan is Pakistan’s most underdeveloped and neglected region, and Gwadar is not connected to the national grid. It had instead relied on power from neighboring Iran but that has slowed to a trickle in recent months. Water has also become scarce after a dam dried up.

Last year, weeks-long protests erupted in the strategically important fishing town against a severe shortage of water and electricity and threats to livelihoods, seen as part of growing discontent with China’s presence in Gwadar.

Beijing and Islamabad hope to turn Gwadar into a regional commercial, industrial and shipping hub that will give China a shorter, more secure trading route, via Pakistan, to the Middle East and beyond, while also boosting Pakistan’s economy. But locals of the city have long complained that Chinese presence and investment in the area has done little to improve their lives, particularly with regards to water and power scarcity. Baloch militant insurgent groups have also carried out militant attacks in protest over CPEC projects.

“Instructions have been issued to the government of Balochistan and the [federal] power division for talks with Iran for the purchase of an additional 100 megawatts of electricity at the soonest,” Jawad Akhtar Khokhar, a maritime affairs adviser at the Pakistani planning ministry, told Arab News. 

Since 1999, Iran has supplied electricity to Pakistan’s Gwadar, Kech and Panjgur districts in the coastal Makran division in Balochistan. It supplied 35MW daily until 2013, when the quota was increased to 100MW due to the growing needs of Gwadar, where residents have long complained of neglect and protested for basic rights. 

Khokhar said the government had granted the Frontier Works Organization (FWO), a military engineering organization, a contract to build a power transmission line to connect Pakistan’s coastal districts with the national grid, for which Rs3 billion ($14.9 million) had been allocated. In the longterm, he said, proposals were under discussion for China to produce 300MW for Gwadar port and city.

In addition to this, he said, 3,000 solar panels had been distributed among local fisherfolk, 1,032 of which had been installed already while the remaining would be installed within a month.

Addressing a conference in Gwadar last week, organized by the Institute of Policy Studies (IPS) and the University of Gwadar, among others, Khokhar gave an overview of development projects in the port city, saying three projects worth $314 million had been completed. These include the Gwadar Smart Port City Master Plan, physical infrastructure of the Gwadar Port and Free Zone Phase-1, and the Pak-China Technical and Vocational Institute.

Another seven projects worth $1.44 billion were in the implementation phase, including the Eastbay Expressway, water treatment, supply and distribution facilities, New Gwadar International Airport, Pak-China Friendship Hospital, Gwadar Free Zone Phase-II, 300 MW coal power plant and a desalination plant with 1.2 million gallons’ capacity.

Speaking at a conference, Naseer Khan Kashani, chairman of the Gwadar Port Authority (GPA), said the government needed to “prioritize people over infrastructure development.”

“Drinkable water and electricity is the top priority of authorities in Gwadar,” he said. 

In his keynote speech at the conference, Zhang Baozhong, chairman of the China Overseas Ports Holding Company (COPHC), said Beijing acknowledged that Gwadar deserved “more rapid development to live up to the expectations of the local people.”


Pakistan reports current account surplus in Jan. owing to improved trade, remittances

Updated 17 February 2026
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Pakistan reports current account surplus in Jan. owing to improved trade, remittances

  • Pakistan’s exports crossed the $3 billion mark in Jan. as the country received $3.5 billion in remittances
  • Last month, IMF urged Pakistan to accelerate pace of structural reforms to strengthen economic growth

ISLAMABAD: Pakistan recorded a current account surplus of more than $120 million in January, the country’s finance adviser said on Tuesday, attributing it to improved trade balance and remittance inflows.

Pakistan’s exports rebounded in January 2026 after five months of weak performance, rising 3.73 percent year on year and surging 34.96 percent month on month, according to data released by the country’s statistics bureau.

Exports crossed the $3 billion mark for the first time in January to reach $3.061 billion, compared to $2.27 billion in Dec. 2025. The country received $3.5 billion in foreign remittances in Jan. 2026.

Khurram Schehzad, an adviser to the finance minister, said Pakistan reported a current account surplus of $121 million in Jan., compared to a current account deficit of $393 million in the same month last year.

“Improved trade balance in January 2026, strong remittance inflows, and sustained momentum in services exports (IT/Tech) continue to reinforce the country’s external account position,” he said on X.

Pakistan has undergone a difficult period of stabilization, marked by inflation, currency depreciation and financing gaps, and international rating agencies have acknowledged improvements after Islamabad began implementing reforms such as privatizing loss-making, state-owned enterprises (SOEs) and ending subsidies as part of a $7 billion International Monetary Fund (IMF) loan program.

Late last month, the IMF urged Pakistan to accelerate the pace of these structural reforms to strengthen economic growth.

Responding to questions from Arab News at a virtual media roundtable on emerging markets’ resilience, IMF’s director of the Middle East and Central Asia Jihad Azour said Islamabad’s implementation of the IMF requirements had been “strong” despite devastating floods that killed more than 1,000 people and devastated farmland, forcing the government to revise its 4.2 percent growth target to 3.9 percent.

“What is important going forward in order to strengthen growth and to maintain the level of macroeconomic stability is to accelerate the structural reforms,” he said at the meeting.

Azour underlined Pakistan’s plans to privatize some of the SOEs and improve financial management of important public entities, particularly power companies, as an important way for the country to boost its capacity to cater to the economy for additional exports.

“This comes in addition to the effort that the authorities have made in order to reform their tariffs, which will allow the private sector of Pakistan to become more competitive,” the IMF official said.