"Pakistan is facing a serious energy crisis and we want to end it as soon as possible," he told reporters.
He, however, avoided commenting specifically on a statement by a US State Department spokeswoman warning Pakistan of sanctions if it went ahead with the Iran gas pipeline project.
"We believe there are better, more secure and more efficient ways for Pakistan to get its power. We've made clear to countries around the world, including Pakistan, that we believe it's in their interest to avoid activities that could be prohibited by UN sanctions or that could be 'sanctionable' under US law," the spokeswoman had warned Islamabad on Friday.
The prime minister said the energy crisis had become a big burden on the national economy. He said everyone knew that India had been part of the project in the past.
Raja Pervez Ashraf announced a grant of Rs500 million for upgrading, repair and renovation of the college building. He said the faculty's demand for upgrading the college to university level would be considered at a later stage.
The prime minister said the country was facing existential challenges like terrorism, lawlessness and price hike that could only be tackled by a united nation and strengthening of democracy was necessary for this.
He claimed the PPP had presided over a "record development work" and "we have restored the Constitution in its real shape".
"The energy crisis is a major issue and we have to make the federation strong," he said.
He said the PPP believed in provincial autonomy and the provinces had been given their rights for the first time.