China-Pakistan ink $4.8 billion nuclear power plant deal, strengthening economic cooperation

Islamabad, June 21: China and Pakistan have signed a significant agreement, worth $4.8 billion, to establish a 1,200-megawatt nuclear power plant in Punjab. The deal symbolises the deepening strategic cooperation between the two longstanding allies.

Prime Minister Shehbaz Sharif witnessed the signing of the agreement, which entails China constructing the Chashma-V nuclear plant in the Mianwali district of Punjab. He emphasized the urgency of initiating the project without further delay and criticized the previous government for causing delays.

Despite challenging economic circumstances, Pakistan secured a substantial investment from China, highlighting the trust and confidence Chinese companies and investors have in Pakistan. Special concessions granted by Chinese companies will result in substantial cost savings for the project.

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Prime Minister Sharif expressed optimism that with the assistance of China and other friendly nations, Pakistan would overcome its current economic difficulties. He also acknowledged the support provided by Saudi Arabia, the United Arab Emirates, and Qatar to Pakistan's financially strained government.

Pakistan's Chashma power plants are instrumental in generating cost-effective nuclear power. The existing four power plants already have an installed capacity of 1,330 megawatts, as confirmed by the Pakistan Atomic Energy Commission. In addition to these, two other nuclear power plants, the Karachi Nuclear Power Plants (KANUPP 2 & 3), are operational with a combined capacity of 2,290 megawatts.

Due to its substantial financial debt, Pakistan is facing challenges in securing multilateral loans and bilateral assistance, making support from the International Monetary Fund (IMF) crucial. China remains a steadfast supporter of Pakistan, while Saudi Arabia and the UAE have also provided selective assistance.

In 2019, Pakistan and the IMF signed a $6 billion deal, subject to certain conditions. However, the plan has faced multiple obstacles, and the full reimbursement is still pending, as the donor insists on Pakistan fulfilling all formalities.

Pakistan's economy has been in a deteriorating state for several years, resulting in soaring inflation and immense pressure on the impoverished population. Meeting daily needs has become increasingly difficult for a significant portion of the country's residents.

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