Work on the Chashma 5 project would begin immediately, Shehbaz said on state-run news channel PTV following the signing of the memorandum of understanding (MOU) between China National Nuclear Cooperation and Pakistan Atomic Energy Commission.
"Investment from China in this project to the tune of $4.8 billion sends a message loud and clear that Pakistan is a place where Chinese companies and investors continue to show their trust and faith," Shehbaz said.
The Chashma 5 project will be built in the central province of Punjab. China's support will help Pakistan make the transition away from reliance on fossil fuels.
Pakistan's total nuclear energy production capacity rose to 1,400 mw, when the country's sixth nuclear power plant opened two years ago. Located in the southern port city of Karachi, that 1,100 mw plant was also constructed with Chinese assistance.
Shehbaz, whose government is desperately struggling to stave off a balance of payments crisis, thanked the Chinese partners for offering a $100-million discount for the latest project.
It is unclear whether the new investment is part of the $65 billion that China has pledged in infrastructure building for Pakistan under its Belt and Road Initiative.
The new project was originally planned to start a couple of years ago, and Shehbaz expressed thanks to the Chinese side for not rescheduling costs despite the long delay. Instead, he said, the Chinese had disbursed an initial 30 billion Pakistani rupees ($104.53 million) to start the project.
Prime Minister Shehbaz Sharif said on Tuesday that there is an extraordinary delay in the issuance of the next loan tranche by the International Monetary Fund (IMF) despite fulfilling its conditions.
Speaking at the Memorandum of Understanding (MoU) signing ceremony for the construction of Chashma 5 Nuclear Power Plant, Shehbaz regretted delays by IMF and said that while the country awaits the tranche, it is China that has stepped in to aid and rescue Pakistan.
Other countries have also provided support to Pakistan, but at this time the financial support from China is of particular importance, said the premier, adding that China could not be thanked enough for its assistance.
Pakistan has met the conditions for IMF’s ninth review and yet is encountering unusual delays, said the PM. However, Saudi Arabia and Qatar along with China are helping Pakistan, he added.
Shehbaz also thanked the Pakistan Army for taking a deep interest in this project, which was initiated during former prime minister Nawaz Sharif’s tenure. The previous government had shelved the project and its resumption is the result of the incumbent civil and military leadership being on “one page”.
On Monday, the premier reached out to a nearly dozen influential global capitals to sensitise them about Pakistan’s efforts to revive the $6.5 billion bailout package amid wide gaps between Islamabad and the International Monetary Fund over budget figures.
Last week, Pakistan said that it was ready to address the IMF’s concerns over the budget for fiscal year 2023-24 reportedly after Shehbaz took note of the fast deterioration in relations with the global lender in recent days.
“We are not doctrinaire about any element of the budget FY24 and are keenly engaged with the IMF to reach an amicable solution,” said the Ministry of Finance in a surprising statement in response to the IMF’s objections over the new budget.
The new statement marked a departure from the earlier rigid stance taken by Finance Minister Ishaq Dar who had said that Pakistan would not accept IMF’s advice on giving tax exemptions.
