The US Government is to provide $51m to restore three power plants in Pakistan, expected to increase the country's generating capacity by 315MW.
The upgrades at the Guddu, Jamshoro and Muzaffargarh thermal power stations are part of the first phase of the US energy programme for Pakistan announced in October last year.
Work at the Guddu Thermal Power Station will restore 35 to 55MW of capacity using more efficient turbines and save about $2.3m each year in fuel costs, according to a government statement.
Rehabilitation of the Jamshoro Thermal Power Station near Hyderabad in Sindh Province is expected to provide 95MW to the national grid and save at least $11.4m each year in fuel costs.
The Muzaffargarh upgrade will increase its capacity by 165MW to the national grid, saving about $17m a year.
Pakistan is currently suffering from severe electricity shortages.