ISLAMABAD: Pakistan and Iran finalized an agreement on Monday according to which Tehran would supply 100 megawatts (MW) of power to the Gwadar port city, Pakistan's energy ministry said in a statement. 

Gwadar is located in Pakistan's southwestern Balochistan province, which is the country's most underdeveloped and neglected region. The port city of Gwadar is not connected to the national grid and has instead relied on power from neighboring Iran. 

The strategically located fishing city has often seen weeks-long protests over the shortage of water and electricity, among other reasons. 

Pakistan’s Energy Minister Khurram Dastgir reached Iran on March 10 last week to review progress on the project to supply power to Gwadar. During his visit, Dastagir held meetings with his counterpart, Iranian Energy Minister Ali Akber Mehrabian, and other Iranian officials, the ministry said. 

To finalize the power supply agreement, three sessions were held between technical teams on both sides. "As a result of these meetings an agreement was signed on 13.03.2023 between Pakistan & Iran to provide 100 megawatts of electricity," Pakistan's Ministry of Energy said. 

Both ministers laid emphasis on developing bilateral relations between Pakistan and Iran and spoke of additional cooperation in the field of energy, the ministry added.

"The project will be inaugurated at the earliest. This project will ensure uninterrupted supply to Gwadar and lay the foundations of a prosperous Gwadar," it said. 

During his visit, Dastagir congratulated the leadership of Iran and Saudi Arabia for renewing their diplomatic relations.