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Risk of potential default completely averted, says PM Shehbaz Sharif

Risk of potential default completely averted, says PM Shehbaz Sharif
July 14, 2023 Web Desk

MIANWALI (APP) - Prime Minister Muhammad Shehbaz Sharif on Friday broke ground on the 1200 MW Chashma Nuclear Power Plant Unit 5 (C-5) here which is likely to be completed in seven to eight years at a cost of around US$3.48 billion.

On June 30, 2023 the prime minister witnessed the signing of Memorandum of Understanding (MoU) on the C-5 project between China National Nuclear Corporation Overseas Ltd (CNOS) and Pakistan Atomic Energy Commission (PAEC).

Addressing the ground breaking ceremony here at Chashma, the prime minister said keeping in mind the country’s requirements of clean and cheap energy sources, the project should be completed before the given schedule.

Terming it a huge milestone and a symbol of cooperation between the two great friends China and Pakistan, Shehbaz Sharif said the project would help the country promoting clean, efficient and comparatively cheaper energy.

He said after a pause of many years, the China Pakistan Economic Corridor (CPEC) was going again in full swing. He gave the credit of concluding the agreement of C-5 to the coalition government and the SPD for their hard efforts.

“Our detractors had been fabricating rumours all around that Pakistan was going to default on its sovereign commitments but we crossed all turbulent waters in just 15 months,” he added. "However, he said the risk of potential default has been completely averted through team effort of the government."

The prime minister said a couple of days ago, there was an approval of the International Monetary Fund (IMF) programme and within 48 hours around US$4.5 billion were transferred by the Pakistan’s brotherly countries Saudi Arabia and UAE besides another US$1.2 billion from the IMF.

About four months ago, he said the Chinese government and commercial banks rolled over amounts back to Pakistan to the tune of US$5 billion.

He paid his tributes to the the Chinese President XI Jinping, Saudi Crown Prince Mohammad bin Salman and UAE President Mohamed bin Zayed Al Nahyan for their support in need of hour.

He informed that as a result of serious efforts by the coalition government and himself, the Chinese company kept the cost of the project at the level agreed upon in 2017-18 by then PML-N government and not include the average inflation of around 10% in the project cost. Further, he said on his request, a discount of Rs 30 billion was also given to Pakistan which reflected a sense of sincerity between the two countries.

Charge D’affaires of the Chinese embassy in Pakistan, Pang Chunxue said C5 would help Pakistan building low carbon, clean and cheap energy which would also produce local jobs and would engage the local industries to contribute in the project.

Chairman of China National Nuclear Cooperation Yu Jianfeng said cooperation between Pakistan and China in nuclear energy had become an integral part of the all weather strategic cooperative partnership.

He said the C5 project was a significant milestone in the HPR 1000 development global journey. Hualong One (HPR 1000) is the 3rd-generation nuclear power brand to which China has exclusive intellectual property rights.

Planning Minister Ahsan Iqbal, Energy Minister Khurram Dastgir Khan, and Chairman PAEC Dr Raja Ali Raza were also present.