[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Pakistan has given the go-ahead for a China-funded Chashma nuclear power project worth Rs1.05 trillion, intending to generate 1,200 megawatts of electricity. However, concerns have been raised as necessary initial tariffs and approvals were not secured before approval. The government did not fulfill all the required formalities before granting the project the green light.
The project will rely on a substantial foreign exchange component and a Chinese supplier credit, facilitated by a $2.9 billion Chinese loan. Nevertheless, providing nearly Rs1 trillion sovereign guarantees for the C-5 project poses challenges due to IMF restrictions on maximum guarantees.
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Furthermore, the Planning Commission had previously objected to the cost of electricity generation and its impact on the country’s least-cost generation plan. The project underwent multiple revisions and submissions over the years.
Aside from the Chashma nuclear power project, the ECNEC approved other projects, including a revision in a World Bank-funded initiative aimed at expanding Pakistan’s narrow tax base and improving the tax-to-GDP ratio. Criticisms were voiced regarding foreign funding allocation for activities that may not have required it.
Please note that developments may have occurred after my last update in September 2021, so it’s essential to verify the latest information from reliable news sources.
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