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Pakistan’s Ministry of Finance refuses to guarantee funding for expansion of nuclear power

Expansion in nuclear power generation hits snags Kazim Alam  January 31, 2023 

KARACHI: 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.

The list contains all guarantees expected to be issued during the fiscal year. The government is treating it as a ceiling to contain fiscal risks and safeguard the public debt trajectory.

The spokesperson for the finance ministry wasn’t available for comment……………………………………..


January 31, 2023 - Posted by | politics

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