Amir Saeed

Nuclear energy presents a viable and cost-effective solution to Pakistan's power challenges, offering reliability and sustainability while enhancing energy security and supporting economic growth.

Talking to WealthPK, Dr. Afia Malik, an energy expert at the Pakistan Institute of Development Economics (PIDE), highlighted the critical role of nuclear energy in addressing Pakistan’s power challenges, particularly after the government's decision to halt gas supplies to the captive power plants. She emphasized that energy security is vital for the nation's economic, environmental, and national security, linking various economic sectors. Malik argued that energy security could be achieved through the development of reliable, sustainable, safe, affordable, and environmentally sound energy sources.

Currently, fossil fuels make up 63% of the country’s commercial energy supplies, while renewables (including hydro) contribute 28%, and nuclear power 9%. She further highlighted that the advantages of nuclear power are manifold. It offers a long operational lifetime and can provide stable baseload generation with low and predictable generating costs. Alternatively, it can be operated flexibly at a higher operational cost. “Nuclear energy also ensures supply security through long fuel contracts and enhances system reliability.

Notably, it is relatively independent of geographical constraints and has low land use requirements. Introduction of Small Modular Reactors (SMRs) could further fill the current or future energy market gaps,’’ she said. Malik pointed out that attracting private sector capital is becoming increasingly essential for advancing nuclear energy projects in Pakistan. Financial mechanisms such as green bonds and loans, along with guarantees, can mitigate risks and encourage broader investor participation in this sector.

Talking to WealthPK, Tauseef H. Farooqi, former chairman of the National Electric Power Regulatory Authority (NEPRA), said the primary criterion for selecting an energy source should be its affordability, reliability, and sustainability — qualities that the nuclear energy fulfils effectively. Farooqi called for applying the expertise gained by the Pakistan Atomic Energy Commission (PAEC) in operating and maintaining nuclear power plants to provide operational services to the countries developing their civilian nuclear programs. He underscored the significance of nuclear power in light of global commitments to reduce carbon emissions following COP29.

As nations strive to triple their carbon-free energy output, the importance of nuclear energy as an emission-free and sustainable source has become even more pronounced. “The current landscape of the country’s energy sector reveals a pressing need for diversification away from fossil fuels. With over 70% of its oil needs met through imports, fluctuations in global prices significantly impact Pakistan's fiscal health. Reliance on imported fuels has led to increased electricity generation costs and frequent power outages, causing higher consumer tariffs,” Farooqi warned.

Credit: INP-WealthPk