The new 350 MW power station, to be built jointly by Chinese Harbin Electric Corporation and Pakistan Siddiqsons Energy, will be located near the Bin Qasim port in Karachi, Harbin Electric, China's largest exporter of power units, said in a statement.
Construction will start in July and be completed in 31 months, the statement added.
Harbin Electric has built about 30 per cent of Pakistan's power stations.
Pakistan faces about 5,000 MW energy shortages and the government has launched several projects to bridge the gap.