Indian and Pakistani officials today discussed proposals for trade in electricity, including the setting up of a transmission line to supply 500 MW to energy-starved Pakistan.
In an indication of the importance attached to the move by Pakistan's new PML-N government, Water and Power Minister Khwaja Muhammad Asif chaired a meeting with a visiting five-member Indian delegation led by a Joint Secretary of the Ministry of Power.
Later, discussions were held between expert groups of the two countries.
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The Indian delegation consists of experts in trade in electricity.
During today's talks, the two sides discussed several proposals for the import of 500 MW by Pakistan, including the setting up of a "high-voltage direct current link" to transfer electricity, an official statement said.
The line will emanate from a grid station in India and will link to a grid station in Pakistan's Punjab province.
Reports have said that Pakistan's new government will seriously consider importing 1,000 MW of electricity from India as part of a short to medium-term strategy to end power outages.
The World Bank has already conducted a feasibility study on the issue.
World Bank officials said 1,000 MW could be imported from India within the next two years.
The previous Pakistan People's Party-led government had decided in principle last year to import 500 MW of power from India.
In August, Indian and Pakistani experts agreed to conduct feasibility studies and identify points for the proposed import of electricity.
Indian officials also visited the location in Punjab province where the Pakistani and Indian electricity grids were to be connected but no further headway was made in the matter.
Pakistan is grappling with a crippling energy crisis that has resulted in power outages of up to 20 hours in parts of the country.