Expansion in nuclear power generation hits snags

The development of C-5, which is the fifth unit of the Chashma Nuclear Power Generating Station, has hit a snag because of the reported refusal by the Ministry of Finance to furnish a sovereign guarantee, sources told Dawn on Monday. The Chinese partner has agreed to provide financing for up to 85 per cent of the $3.7 billion nuclear power plant having a nameplate capacity of 1,200 megawatts, subject to the sovereign guarantee. Such guarantees are meant to assure the creditor that the government will satisfy the obligation if the primary obligor — the Pakistan Atomic Energy Commis­sion (PAEC), in this case — defaults on the loan repayment. The loan programme of the Internat­io­nal Monetary Fund (IMF) seems to have tied the government’s hands with regard to the sovereign guarantee. As part of the 2022-23 budget, the government has laid before the National Assembly a Statement of Contingent Liabilities.