A high-level Pakistani delegation will visit Iran to negotiate and finalise the modalities for the import of 1000MW of electricity from the bordering country.

According to Ministry of Water and Power spokesman, this was agreed during the meeting of Iranian Ambassador, Ali Raza with Secretary Ministry of Water Younis Dahga, on Monday.

Both the countries are already working on the proposal and modalities for the project and during the meeting it was agreed that a high level delegation will visit Iran shortly to negotiate and finalise power purchase agreement for 1000MW of electricity that Iran offer to export to Pakistan, said spokesman.

He further said that the Iranian Ambassador emphasised that after 5+1 Agreement, his country was keen to speed up power sector cooperation between Pakistan and Iran and his country was ready to export 3000MW electricity to Pakistan. It was also agreed that the delegation, whose visit dates would be announced shortly, will also discuss modalities for completion of feasibilities for additional 2000MW export to Pakistan to take the total to 3000MW.

The agreement between two countries on the import of 1000MW electricity was signed on May 2012.

According to the agreement, the Iranian government will provide 70 per cent of the funding for the project whereas the Pakistan government will arrange remaining 30 per cent. The project completion time was three years and rate was determined to be 8 cents per unit whereas in case of rise in the oil prices on the international market, a maximum of 11 cents will be charged.

But due to sanctions on Iran the project could not be completed, as Iran's financial system is completely sanctioned by the US and EU, which makes all Pakistani banks unwilling to process payments to Iranian energy companies.