On Thursday, Pakistani PM Shehbaz Sharif opened a third $2.7 billion unit of the Karachi Nuclear Power Plant (KANUP), which is the China-designed Hualong One nuclear reactor with a capacity of 1,100 MW, amid the country’s grave energy crisis.
Overview
With the inauguration of the new plant, known as K-3, Pakistan’s total nuclear power generation capacity has reached 3,600 MW, accounting for 10% of the country’s energy sources.
PM inaugurates 1,100 MW K-3 nuclear power plant in Karachi. Congratulations to the scientists and workers of Pakistan and China for the successful completion of the project. https://t.co/YFF9fv0Wzt
— Pakistan Embassy China (@PakinChina_) February 3, 2023
K-3 was constructed with China’s help under the China-Pakistan Economic Corridor (CPEC). The $60-billion CPEC is part of Beijing’s ambitious Belt and Road Initiative, connecting Pakistan’s Gwadar port with Kashgar in northwest China’s Xinjiang Uygur Autonomous Region.
Sharif’s Comments
During his address at the inauguration ceremony, Sharif lamented that the country’s energy imports had reached $27 billion, highlighting that Pakistan “badly needs” clean and cheap energy sources.
He further mentioned that Islamabad had the potential of producing 60,000 MW of electricity using hydel power, but could only produce 10,000 MW as of now.
The government is working to diversify the energy mix by focusing on the development of indigenous sources of power generation such as hydropower, coal, & solar. Locally produced electricity will help reduce fuel import, bring down tariff & thus provide relief to the common man. https://t.co/ZIkLPIAFWd
— Shehbaz Sharif (@CMShehbaz) February 3, 2023
Calling China a “trusted friend,” in light of Islamabad’s economic crisis, Sharif expressed hope that Beijing would markedly slash the per unit cost of electricity for the next 1,200 MW nuclear power plant to be built at Chashma.
Pakistan-China Ties
The two countries signed the Agreement for Cooperation in Peaceful Uses of Nuclear Energy in 1986, building the 325 MW Pressurised Water Reactor (PWR) at Chashma in Punjab in 1991. Additionally, three more power plants were constructed at Chashma.
A contract was signed in 2013 to build two nuclear units at KANUP, K-2 and K-3, for which construction began in August 2015 and May 2016, respectively.
Energy Crisis
The launch of the K-3 comes against the backdrop of Pakistan suffering from debilitating power cuts — most recently on Monday, when all major cities were severely impacted due to a “major breakdown” of the national grid.
Pakistan Launches $2.7 Billion China-Designed Nuclear Plant
— Faseeh Mangi (@FaseehMangi) February 2, 2023
☢️Nuclear is Pakistan's cheapest energy source by far
⚡️Nuclear generated about a fifth of total electricity in last six months, second biggest power source https://t.co/pwrguggtpb pic.twitter.com/DyYK1daJ4g
Islamabad is also in talks with the International Monetary Fund (IMF) to hike its energy rates in exchange for bailout funds after its foreign-exchange reserves dropped to the lowest in nine years last month because of surging fossil fuel costs.
The IMF has suggested Pakistan increase its general sales tax to 18% to raise extra funds as the country’s debt is projected to reach 5.2 trillion rupees.