Talking to media on the occasion, Prime Minister Mian Muhammad Nawaz Sharif said the Chinese consortium has agreed to invest in Sahiwal power plant.
The construction of the project will begin next month and will be completed by 2016.
The project includes two power plants of 660 megawatts each.
The Chinese companies have showed intent to form a consortium for investment in power sector in Pakistan. They appreciated investment policies of Pakistan and said that pro-investment policies have attracted them for investment in Pakistan.
PM Nawaz Sharif said that early harvest projects are important for Pakistan and their timely completion will give the required boost to our economy.
Talking to Chinese investors at a breakfast meeting in Sanya on Friday, he said the Chinese investment is important for Pakistan and it will bring the economy into take off stage.
The Prime Minister assured full support and assistance of the government and said that the minor hiccups would be tackled.
The two sides also exchanged documents and intent of the two sides for investment in Sahiwal Power Plant.