An agreement was signed between Afghanistan and Pakistan on Saturday to set electricity transit fees from Central Asia to South Asia.

The will facilitate transmission of cheaper electricity from Central Asia to the South Asian country. The agreement is part of the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000).

Afghan acting finance minister Hazrat Omar Zakhilwal signed the agreement with his counterpart Ishaq Dar in the presence of World Bank President Jim Yong Kim.

The US Special Representatives for Afghanistan and Pakistan Dan Feldman was also present during the signing of the agreement in Washington.

World Bank President Jim Yong Kim said the agreement was major sucess to meet Pakistan’s power requirements and establish commercial arrangements for the trade of 1,300MW of electricity between Kyrgyz Republic, Tajikistan, Afghanistan and Pakistan.

Pakistani finance minister also welcomed the conclusion of the agreement and said the deal was “a major step towards closer partnership with Kabul that will allow supply of Central Asian electricity to Pakistan through territory for a transit fee of 1.25 cents per KW.”

Dar said the conclusion of the deal marks a new beginning towards greater economic cooperation between Kabul and Islamabad.

In the meantime, Afghan acting finance minister Hazrat Omar Zakhilwal said Afghanistan remains committed to realise the CASA-1000 vision and improve eneregy security and trade for the two nations and the region