After Pakistan’s Finance Ministry refused to provide a sovereign guarantee, the fifth unit of the Chashma Nuclear Power Generating Station, C5, hit a snag, Dawn reported citing sources.
The Chinese government has said that they have agreed to provide finance for up to 85 per cent of the USD 3.7 billion nuclear power plant project, subject to the sovereign guarantee.
The sovereign guarantee is referred to assure the creditor that the government will satisfy the obligation if the primary obligor defaults on the loan payments and here Pakistan Atomic Energy Commission (PAEC) is one.
The loan programme of the International Monetary Fund (IMF) seems to have tied the government’s hands with regard to the sovereign guarantee.
