The national economic council "has approved phase two of the Chashma Nuclear Power Project which is about 51 billion rupees (about 880 million dollars) in expenditure," Aziz, currently finance minister, told national television.

The plant will generate 300 megawatts of electricity.

A statement issued by the Executive Committee on the National Economic Council said it had approved installation of a nuclear power plant at Chashma, Mianwali, some 280 kilometres (174 miles) south of Islamabad.

It will be constructed next to an existing plant, also supplied by China and operational since 1999.

The second plant will be ready to generate electricity in seven years.

The project comprises a nuclear steam supply system, a turbine generator set and auxiliary equipment including electrical, mechanical and civil work, the statement said.

It also envisages technology transfer, with the ultimate aim that Pakistan Atomic Energy Commission would be self-sufficient in all aspects of designing, installation, construction and operation, it said.

The agreement to set up the plant was signed in May by China National Nuclear Corporation president Kang Rixin and Pakistan Atomic Energy Commission chairman Pervez Butt in Islamabad.

Pakistan has relied heavily on long-time friend and ally China for its defence needs since 1990 when the United States stopped supplying it with military hardware over its nuclear program.

Pakistan confirmed it had nuclear weapons in May 1998 when it matched tests conducted by India.

WAR.WIRE