Published On: Sat, Jan 4th, 2014

China Committed To Push Pakistan Out Of Energy Crises



Corporate News (Pakistan News) energy crises

Corporate News (Pakistan News)

China, which remains committed to push Pakistan out of the energy crises, recently agreed to lend Pakistan a loan of $6.5 billion which was payable in 10-20 years, for the construction of two Nuclear power plants in Karachi. This grant by China was announced by the Prime Minister of Pakistan in a special cabinet meeting on the condition of the current economy of the country. The combined power generation capacity of these 2 power plants is 2,117 megawatts.

In the high level meeting, the Finance Minister, Ishaq Dar highlighted that at the end of their government’s tenure an addition of 8,000 MW would be made to the national grid through projects such as the Dasu power project and Diamer Basha Dam.

The Prime Minister not only discussed the energy crises issue with urge but also showed keenness in the construction of the Karachi Circular Railway (KCR) project. He said that the Japan International Cooperation Agency agreed to provide $2 billion for the project but this would only be possible if Pakistan was committed to the $6.7 billion IMF loan programme.

Making remarks on the economic situation of the country the Finance Minister said that the government did not have a magic wound to bring the economy back to track instantly but he urged that time was required. The government managed to maintain the economic growth of the country in the first quarter (July-September) with a figure of 5.1 % which seemed to be a very decent figure.

The Finance Minister seemed confident in restoring the foreign currency reserves back to $ 16 billion with the help of $1 billion loan from the World Bank, $400 million from the Asian Development Bank and $730 million from the Islamic Development Bank. Dar expressed the hope that $800 million would soon be recovered from Etisalat as part of remaining privatisation proceeds. Pakistan will also get $1.54 billion from the United States on account of Coalition Support Fund.

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