Pakistan and China Sign Agreement to Develop Nuclear Power Plant

Pakistan and China signed a US$4.8 billion agreement on Tuesday (Jun 20) to develop a 1,200-megawatt nuclear power plant, Prime Minister Shehbaz Sharif announced, applauding the investment by a country that Pakistan regards as its most reliable partner.

Following the signing of a memorandum of understanding (MOU) between China National Nuclear Cooperation and Pakistan Atomic Energy Commission, Sharif stated on state-run news station PTV that work on the Chashma 5 project will begin immediately.

"China's $4.8 billion investment in this project sends a loud and clear message that Pakistan is a place where Chinese companies and investors continue to show their trust and faith," Sharif remarked.

The Chashma 5 project will be built in Punjab's centre province. China's assistance will aid Pakistan's shift away from dependency on fossil fuels.

When Pakistan's sixth nuclear power station debuted two years ago, the country's overall nuclear energy output capacity increased to 1,400 mw. That 1,100 MW facility, located in the southern port city of Karachi, was similarly built with Chinese aid.

Sharif, whose government is trying to avoid a balance-of-payments crisis, hailed the Chinese partners for offering a US$100 million discount on the current project.

It is unclear whether the new investment is part of the US$65 billion in infrastructure investment committed by China under its Belt and Road Initiative for Pakistan.

The new project was originally planned to start a couple of years ago, and Sharif expressed thanks to the Chinese side for not rescheduling costs despite the long delay. Instead, he said, the Chinese had disbursed an initial 30 billion Pakistani rupees (US$104.53 million) to start the project.