Business Standard

Pakistan signs MoU with China for nuclear power project worth $3.4 billion

Pakistan PM Sharif witnessed signing of Memorandum of Understanding (MoU) between Pakistan and China for a 1200MW Chashma-5 (C-5) nuclear power project worth $3.48 billion, local media reported


IANS Islamabad

Listen to This Article

Pakistan Prime Minister Shehbaz Sharif on Tuesday witnessed the signing of the Memorandum of Understanding (MoU) between Pakistan and China for a 1200MW Chashma-5 (C-5) nuclear power project worth $3.48 billion, local media reported.
China National Nuclear Corporation Overseas Ltd (CNOS) President and Pakistan Atomic Energy Commission (PAEC) Member Power Muhammad Saeed Ur Rehman signed the MoU.
On the occasion, the Prime Minister said the nuclear power project was a significant step towards economic cooperation between the two countries, Geo News reported.
He said the decision to start this project had been taken, and the main conditions were agreed upon during his previous term as Prime Minister; however, the successive government put this project in cold storage.
He said due to the higher global inflation, the project would have cost much more than that determined in 2017-18, but the Chinese government not only abstained from raising the cost but also gave a discount of around Rs 30 billion, Geo News reported.
Vowing to kick-start the project without delay, the Pakistan prime minister said under the difficult economic situation, investment from China in this project to the tune of $3.48 billion sent a clear message that Pakistan was a place where Chinese companies and investors continued to show their trust and faith.
"This reflects the famous quote that our friendship is higher than the Himalayas, deeper than the deepest ocean, sweeter than sugar and honey, and stronger than iron and steel. He said President Xi Jinping had called this friendship "iron brothers", Geo News reported.
Furthermore, he added that he had recently inaugurated a K-3 nuclear project in Karachi.
LNG tender draws blank; foreign banks refuse LCs
Pakistan failed in its first attempt in about a year to buy liquefied natural gas (LNG)from the spot market, with no suppliers of the power-station fuel offering cargoes. No firms responded to Pakistan LNG’s tender to purchase six shipments for October-to-December delivery, which closed on Tuesday, said traders.
Several overseas banks weren’t accepting letters of credit (LC) — a pledge by a lender to repay funds if the buyer can’t — from Pakistani counterparts to purchase LNG shipments, making suppliers reluctant to offer cargoes. The nation is struggling with a weakening currency, political turmoil, and an increasing risk of a sovereign default.  Pakistan’s inability to buy gas will aggravate energy shortages in the country, increasing the frequency of blackouts and curbing the supply of fuel to industrial consumers.  The nation was hit hard by the energy crisis spurred by Ukraine war. bloomberg

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 20 2023 | 6:06 PM IST

Explore News