Pakistan and China have officially signed a deal worth $4.8bn to construct a 1,200-megawatt nuclear power plant, marking a significant investment by China, which is considered Pakistan's most reliable ally, CNN reports.
The Prime Minister of Pakistan, Shehbaz Sharif, expressed his appreciation for China's contribution, emphasizing that it demonstrates the trust and confidence Chinese companies and investors have in Pakistan. The project, known as Chashma 5, will be located in the province of Punjab and will support Pakistan's efforts to reduce reliance on fossil fuels.
Pakistan's total nuclear energy production capacity increased to 1,400 megawatts when its sixth nuclear power plant, built with Chinese assistance, was launched in Karachi two years ago. In light of Pakistan's ongoing balance of payments crisis, Prime Minister Sharif thanked the Chinese partners for providing a $100mn discount for the Chashma 5 project. It remains uncertain whether this investment is part of the $65bn that China has committed to infrastructure development in Pakistan through the Belt and Road Initiative.
Despite the project's delayed start, Prime Minister Sharif expressed gratitude to the Chinese side for not rescheduling costs and for disbursing an initial amount of $104.53mn to commence the project.
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