Despite Pakitan facing an unprecedented financial crisis, its all-weather friend China on Tuesday inked an agreement worth a whopping $4.8 billion in order to set up a 1,200-megawatt nuclear power plant. Calling it a major victory in increasing strategic cooperation between the two nations, Prime Minister Shehbaz Sharif expressed gratitude to Beijing for exhibiting trust at a time when the country is facing such massive economic turbulence.
Under the recently brokered deal, Beijing would build a 1,200-megawatt Chashma-V nuclear plant at Chashma in the Mianwali district of Punjab. Further, elaborating on the project, he asserted that Islamabad will try its best to complete the task within the promised time frame. Notably, this was not the first time when China invested heavily in Pakistan.
Pakistan promises to complete project in time
Earlier, President Xi Jinping's led government invested heavily in 3,000-km long infrastructure projects connecting China’s northwest Xinjiang Uygur Autonomous Region and the Gwadar Port in the western province of Balochistan in Pakistan. The project is also touted as CPEC. In this project, China faced a massive loss due to Pakistan's inability to complete the project within the promised date. However, this time, PM Sharif did not want to anger its neighbouring country and said, "We will kick start it without any further delay". he said as he lambasted the previous government under Imran Khan for delaying the key power project.
He said under a difficult economic situation, Pakistan was getting an investment of $4.8 billion from China in this project, which “sends the message that Pakistan is a place where Chinese companies and investors continue to show their trust and faith”. Sharif said the Chinese companies gave special concessions which would save billions of rupees in this project.
Pakistan Chashma power plants
Pakistan's Chashma power plants are considered a key in the production of cheap nuclear power. The installed capacity of the existing four power plants is 1,330 megawatts, according to the Pakistan Atomic Energy Commission. Two other nuclear power plants are also operational in Pakistan. Karachi Nuclear Power Plants (KANUPP 2 & 3 have a capacity of 2,290 megawatts).
Pakistan, which is under tremendous financial debt, is not getting multilateral loans or even bilateral assistance without the support of the IMF. Only China has stood fast to help Pakistan while Saudi Arabia and the UAE have also been selectively supportive.
The IMF signed a deal in 2019 to provide USD 6 billion to Pakistan on fulfilment of certain conditions. The plan was derailed several times and the full reimbursement is still pending due to insistence by the donor that Pakistan should complete all formalities. Pakistan’s economy has been in a free fall mode for the last many years, bringing unbridled pressure on the poor masses in the form of unchecked inflation and making it almost impossible for a vast number of people to make ends meet.
