Pakistan and China have agreed on an energy cooperation mechanism to push forward bilateral cooperation in civil nuclear energy and other energy-related fields at the conclusion of a state visit by Chinese Premier Wen Jiabao.
”The energy cooperation mechanism will be established to push forward bilateral cooperation in conventional energy, renewable energy and civil nuclear energy,” a joint statement issued late Sunday said. It did not give any detail of the cooperation mechanism.
China is a member of Nuclear Supplier Group whose guidelines prohibit the supply of nuclear power plants and related technology to Pakistan as it has not signed the nuclear Non-Proliferation Treaty.
China has helped Pakistan set up a 300-megawatt nuclear power plant in Chashma, about 200 kilometers south of Islamabad. A second nuclear power plant is nearing completion there with Chinese assistance, and China will help set up two more plants.
Official sources in Islamabad said that projects inked during Wen’s three-day visit include several thermal and hydro-power plants and the mechanism to set up the two planned nuclear power plants at Chashma.
Pakistan and China have stepped up cooperation in civil nuclear energy in the wake of the U.S.-India nuclear cooperation agreement launched in 2008, for which the NSG gave a special exemption. The sources point out that the civil energy cooperation mechanism would take into consideration China’s obligations under NSG guidelines and obligations under the NPT.
The joint statement also said that Pakistan has decided to set up ”a special economic zone” for Chinese business to attract Chinese investment in Pakistan.
