The Pakistani cabinet, chaired by Prime Minister Mohammad Nawaz Sharif, approved the import of 3,000 megawatts (MW) electricity from Iran.
The federal cabinet okayed signing of a Memorandum of Understanding (MoU) for the import of electricity from Iran, the Pakistani International News reported.
The MoU between the two countries would be signed by Prime Minister Nawaz Sharif during his visit to Iran.
Pakistan would import 3,000MW of electricity from Iran according to a draft of the MoU.
Early in March, media reports said that Iranian and Pakistani officials were in talks over the import of 1,000 MW of electricity by Islamabad to overcome its power outages as soon as possible.
A 500-kilovolt power transmission line, stretching for 700 kilometers (about 435 miles), would also be set up from the Iran-Pakistan border to the Southwestern Pakistani city of Quetta.
Pakistan is battling chronic electricity shortage, which is inflaming public anger and stifling industrial output, as power outages can last eight to 10 hours a day in cities, with much more frequent cuts in rural areas.
Electricity imports from Iran reportedly cost Pakistan around $3 million a month.