K-Electric (KE) has signed an agreement with China Machinery Engineering (CMEC) to set up a 700MW coal-fired power project in Pakistan.
Apart from the two firms, China Datang Overseas Investment Company (CDTO) is also a part of the joint development agreement (JDA), which is aimed at constructing a $1bn power plant at Port Qasim.
KE intends to boost its generation capacity with the project.
KE CEO Tayyab Tareen said: "This initiative is in line with KE’s vision of Karachi being a net exporter of power in the years ahead.
"This project will also contribute to KE’s fuel diversification strategy, and marks a significant step towards a new era of cheap base load power in Pakistan."
CDTO president Duan Zhongmin said: "We are fully committed to cooperate with KE and CMEC to successfully execute this Port Qasim project, which shall go a long way to meet the energy needs of the people of Pakistan."
Once operational, the project is expected to meet the rising demands of electricity in the port city of Pakistan, as well as opening up massive employment opportunities, KE said.