Move FM Global News

ISLAMABAD, Pakistan: Pakistan and China have officially signed a deal valued at $4.8 billion to build a 1,200-megawatt nuclear power plant, according to Prime Minister Shehbaz Sharif. The agreement solidifies the investment from China, which Pakistan considers its most reliable ally.

Prime Minister Sharif announced that work on the Chashma 5 project will commence immediately after the signing of the memorandum of understanding (MOU) between China National Nuclear Cooperation and Pakistan Atomic Energy Commission. Sharif praised the substantial investment from China, stating that it demonstrates the trust and confidence Chinese companies and investors have in Pakistan.

The Chashma 5 project will be situated in the central province of Punjab and will contribute to Pakistan’s shift away from fossil fuel dependence, with the support of China. Pakistan’s nuclear energy production capacity reached 1,400 MW two years ago, with the opening of the country’s sixth nuclear power plant in Karachi, which was also constructed with Chinese assistance.

Facing a significant balance of payments crisis, Prime Minister Sharif expressed gratitude to China for offering a $100-million discount on the latest project. It remains unclear whether this investment is part of the $65 billion pledged by China for infrastructure development in Pakistan under the Belt and Road Initiative.

The new nuclear power plant had initially faced delays, and Sharif acknowledged the understanding shown by the Chinese in not rescheduling costs, despite the extended timeline. Instead, an initial payment of 30 billion Pakistani rupees ($104.53 million) has already been disbursed by the Chinese to kickstart the project.