China has signed a Memorandum of Understanding with Pakistan on the construction of a 300 megawatt nuclear power plant at the Chashma nuclear power plant.
    

The MoU was signed after Chinese Premier Wen Jiabao and visiting Pakistani Prime Minister Mir Zafarullah Khan Jamali concluded their talks at the Great Hall of the People on Monday evening.
    

Pakistan Atomic Energy Commission Chairman Pervez Butt said the two sides would soon sign a formal agreement on the nuclear power plant which is proposed to be set up within six years. He said the total financial assistance to be provided by the Chinese government on the project is being negotiated.
    

China is the leading supplier of weapons and defence technology to Pakistan. Its second power plant was built in
Chashma in the 1990s with Chinese assistance.     

Despite international concern over Sino-Pakistani nuclear cooperation, China insists all its nuclear cooperation, including that with Pakistan, is strictly for peaceful purposes. 

Interestingly, China's official media has kept mum on the nuclear project and just mentioned that the two sides have
signed four MoUs, including one on economic and technical cooperation.
    

Apart from the MoU on the nuclear power plant, the two sides signed two other MoUs under which Pakistan's railways system would be modernised for which the Chinese government is to extend soft-term credit of about $500 million.

The MoU will provide Pakistan Railways with 200 passenger coaches in addition to 175 already agreed upon. Besides this, financial and technical assistance would also be extended for 2,500 freight coaches.
    

China would also increase the supply of locomotives to Pakistan Railways from 75 to 175. The MoUs also envisages
provision of 40 electronic locomotives. 

A MoU was signed under which the Chinese government has accorded Pakistan Approved Destination Status which
allows Chinese tourists to visit Pakistan in groups.
    

China also agreed to provide Pakistan with a grant of $9 million under the Sino-Pakistan economic and technical cooperation programme.
    

Jamali is reported to have impressed upon Wen the need to step up China's imports from Pakistan in view of the huge trade imbalance. In 2002, the total bilateral trade amounted to $1.8 billion. Pakistani exports to China was just $750 million. He hoped China could import rice and fruits, particularly, mango, citrus and dates from Pakistan.