The federal cabinet of Pakistan approved a Memorandum of Understanding (MoU) signed between Tehran and Islamabad on importing electricity from Iran during a session chaired by Prime Minister Muhammad Nawaz Sharif on Friday.
According to a draft of the MoU, Pakistan will import 3,000MW of electricity from Iran.
The document is expected to be signed by the Pakistani prime minister during his upcoming visit to Tehran, the News International reported on Saturday.
Pakistan is currently importing 74 MW of electricity a day from Iran for bordering areas of Balochistan Province. Electricity imports from Iran are estimated to cost Pakistan around $3 million a month.
Pakistan has been gripped by chronic power shortage for years.
The power outages, which can last up to 8 hours in some cities and rural areas, have fueled public anger and hampered industrial output in the country.