10 July 2023: The nuclear power plant agreement has been recognised as a token of amplifying economic cooperation between Pakistan and China
On June 20, China and Cash-strapped Pakistan signed a massive $4.8 billion (₹3,95,30,73,60,000.00) deal to build a 1,200 megawatt nuclear power facility as a demonstration of the two all-weather allies' growing strategic collaboration.
Under the terms of the agreement, Beijing is to construct the 1,200 megawatt Chashma-V nuclear facility at Chashma in the Punjabi region of Mianwali in Pakistan. This was signed in front of Prime Minister Shehbaz Sharif.
China grants Pakistan $1 billion(₹82,35,75,50,000.00) for the construction of this facility. In his speech, Prime Minister Sharif described the signing of the nuclear power plant agreement as a symbol of the growing economic ties between Pakistan and China and expressed how committed he was to look into the project quickly.He criticized the previous government of Pakistan, Imran Khan for delaying the project.
According to Sharif, amidst the situation of economic crisis, Pakistan was receiving $4.8 Billion(₹3,95,30,73,60,000.00) from China as investment which reflected the fact how the Chinese companies and investors have trust and faith towards Pakistan.
Mr. Sharif said that friendly countries like China and others could save Pakistan from the existing economic crisis. He expressed how kind the Chinese companies are that they let Pakistan save Billions of rupees by giving concessions for the upcoming project.
He stated that that Pakistan was engaging with the International Monetary Fund to complete the 9th Review and had acted in accordance with all of its requirements.
He also praised Qatar, Saudi Arabia, and the United Arab Emirates for aiding his cash-strapped administration. "We are deeply grateful to President Xi Jinping, and the Chinese leadership for their generous help to Pakistan," he said.
The Chashma nuclear power plants in Pakistan are deemed important to the development of affordable nuclear energy. According to the Pakistan Atomic Energy Commission, the installed capacity of the four current power plants is 1,330 megawatts.
In Pakistan, there are now two more operating nuclear power stations. The KANUPP 2 and KANUPP 3 nuclear power plants in Karachi, each having a 2,290 megawatt capacity.
Pakistan is heavily in debt, therefore is unable to seek bilateral aid or even multilateral economic support without the help of the IMF.
Under such circumstances, China has taken a firm stand in order to help Pakistan while countries like Saudi Arabia, United Arab Emirates have also been supportive.
In 2019, the IMF agreed to give Pakistan $6 billion (₹4,94,13,42,00,000.00 ) with a condition of meeting a number of requirements. To suit the IMF's desire that Pakistan finish all the required legal procedures, the plan was repeatedly derailed, and is yet to be fulfilled.
Pakistan's economy has been critical for a long time now, putting inexorable pressure on the underprivileged, general masses through unconstrained inflation and making it extremely difficult for its citizens to fulfill their needs.