China is to lend Pakistan $US6.5 billion to help build nuclear power stations including a 2200-megawatt plant in Karachi.
Prime Minister Nawaz Sharif said it would help ensure an uninterrupted power supply.
The loans are to be provided by Exim Bank and will be reportedly repaid at a concessional rate over 20 years.
AAP reports Pakistan began building the 2200-megawatt plant last month with Chinese technical assistance.
Pakistan has lengthy blackouts in summer that have strangled economic growth.
Chinese engineers are also busy in the construction of a 969MW hydropower project in Kashmir.