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Pakistan is the only Muslim country which has been utilising nuclear energy for
electricity generation. A major technological breakthrough was achieved twenty five
years ago when Karachi Nuclear Power Plant (KANUPP) started supplying electricity to
the city of Karachi; This indeed was a bold decision taken by the policymakers at a time
when nuclear technology was considered a domain of advanced countries only. At that
time, the country was not fully geared to received such a technologically advanced and
complex facility. The support of much needed technological infrastructure was virtually
non-existent. The facilities for research and development work in this sophisticated field
were in the early stages of development and, above all, there was a dearth of suitably
trained manpower. But there was a realisation that recourse to nuclear power for
electricity generation was necessary to meet not only the future electricity demands but
also to give thfe much needed fillip to the industrial development of the country.
Unfortunately, a few years after the start of commercial operation of KANUPP, the plant
was subjected to international embargoes. The supply of nuclear fuel, spares and
nccessa/y technical support was completely stopped. International embargoes prevented
any transfer of technology or import of sophisticated engineering parts on which nuclear
power plants are heavily dependent. Faced with the challenge of keeping of KANUPP
operational, we had to develop indigenous capability for production of nuclear fuel, spare
parts and replacement equipment. PAEC had to develop a large infrastructure which
involved, among others, design organisations, metallurgical centres, quality assurance
regimes, non-destructive testing facilities, computer, control and instrumentation labs,
welding and other workshops. It has been the policy to 'make thins in Pakistan' which has
seen KANUPP through
25 years of strict international embargoes. PAEC as well as the92
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whole nation is proud that KANUPP has been kept operational during all these years
entirely though indigenous efforts.
Absence of a comprehensive long-term energy policy in the past has subjected our
country to continuing acute energy crisis. Pakistan is beset by serious difficulties rising
from fast growing demand for commercial energy, poor energy resource base and high
cost of imported fossil fuel. The Government of Pakistan has taken some major initiatives
in the energy sector pertaining to setting up thermal powers plants, mainly based on oil,
with the help of private sector. These will appreciably alleviate the energy shortage in the
short-term future. In the long-term perspective, however, Pakistan needs a judicious mix
of different modes of electricity generation which should satisfy such obvious criteria as
cost effectiveness, promotion of self-reliance and minimum environmental degradation.
The Planning Commission has set 7 per cent per annum target for economic growth for
the Perspective Plan (1993-2008). In order to achieve this level of econo/nic growth^
electricity supply will have to be increased at about 8 per cent per annum. Consequently,
the requirement of power generation capacity will increase from
13,500 MW at present to about 40,000 MW by the year 2010. If allout efforts are make to
develop and utilise the indigenous resources of hydro, coal and gas, these can at best be
stretched to support some 25,000 MW power capacity in 2010 (hydro: 14,000 MW,
indigenous coal 7,000 MW, indigenous gas, 4,000 MW). this will leave a large gap of
about 15,000 MW by the year 2010, which will have to be met by fossil fuels or by
making use of nuclear power or by an appropriate combination of both.
In order to avoid excessive dependence on imported fuels, it would be most prudent for
Pakistan to plan for its medium to longterm power generation capacity based on
diversified sources of supply with an appropriate mix of hydro, oil, gas, coal and nuclear.
Nuclear power will help in making our economy less vulnerable to possible price hikes
and reduce import dependence in the future. A step in this direction now will prepare
ourselves for a smooth and gradual shift away from fossil fuels in the future.
• *•>
Although nuclear power plants, like hydro are capital intensive, the savings in fuels and
its transportation costs more than compensate for the initial high investments. It is the
over all longterm favourable economic of nuclear power plants which makes nuclear
power particularly attractive for oil importing countries. Together with the financial
benefits, many other benefits accrue as well. The growing concern about environmental
pollution 'dictates
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93
lesser reliance on use of fossil fuels, which generate CO2 and other greenhouse gases and
will eventually lead to the warming of world by the greenhouse effect. Nuclear power
plants arc a clean source of power generation. It has roved to be a well established and
reliable method of power generation. About 430 operating nuclear power plants the world
over provide an ample proof and a further argument in support of nuclear power is the
continuing addition to the list.
Pakistan will need several nuclear plants to bridge the gap between demand and supply in
the twenty-first century. The contract with Chinese for the supply of nuclear power plant
at Chashma also envisages provision for transfer of technology and training of
manpower. Pakistani engineers and scientists have been actively involved in the design,
manufacture, quab'ty control, nuclear safety evaluation, licensing and construction of the
plant. PAEC is undertaking civil works in the Project amounting to about
17 per cent of the total cost. Various sub-contracts for manufacture of some components
and plant machinery have been won by PAEC's Directorate of Scientific and Engineering
Services (SES) and several equipments have already been handed over after through
inspection and acceptance tests by the Chinese. Pakistani engineers and scientists have
been exposed to the valuable experience of nuclear power plants. Pakistan will gradually
attain expertise for building nuclear power plants with increasing local participation.
Pakistan Atomic Energy Commission has inculcated a sense of confidence in our
local industry for shouldering greater responsibility in our plans for nuclear power
plants manufacturing. Side by side, we have embarked upon a programme to join hands
with local heavy electrical and mechanical industry to work towards local manufacturing
of major components of power plant - a programme which will give a boost to
conventional power industry as* well. Research and development efforts have been
intensified to cover the areas where technical information is not available or is to be
adapted to our requirements. The establishment of Pakistan Welding Institute and
National Centre for Non-Destructive Testing by PAEC is part of an effort it support
fabrication industry and enforce quality control in the manufacturing to meet the exacting
standards of the nuclear industry. It has to be realised at the outset that indigenisation is
a slow process. We must also not ignore the technological complexity and huge amount
of effort involved in the development of nuclear power plants. Any degree of success in
selfreliance is a welcome sign and it would on its own breed further success. 94
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Joint ventures in Pakistan: Coal Based Power Project
A USA-UK-Pakistan joint venture will undertake in the near future the installation of a
450 megawatt power plant using the latest fluidised bed technology which enables
environmentally safe use of coal with a high sulphur content.
For.this purpose, an open pit mine will be developed al Lakhra in Sindh province with a
capacity to produce three million tonnes of coal per annum or more by Smith Associated
Power and Mining Company. The project involving an investment around S600 million
has been finalised with a joint venture company representing companies from the USA,
UK and Pakistan.
Bechtel Power Corporation of USA are the EPC contractors for the main plant and
Crouch Mining Ltd of UK will develop the coal mines for the power station. The coal
mine area was recently leased to the joint venture company and the groundbreaking
ceremony of the project is expected around June this year. The joint venture company has
also offered to supply coal to WAPDA for the 3x50 MW units al Lakhra.
The high sulphur content in Lakhra coal had so far hindered its large-scale use for
generation of electricity. However, with the availability of the fluidised bed technology
now, a number of pdwer generation projects based on Lakhra mines are in the pipeline.
These include BBIU Power LP, USA and Sindh Coal Electrical Power Company Ltd
with a capacity of 200 MW and 100 MW power stations, respectively.
These power plants envisage an investment of around $300 million. On the whole, the
indigenous coal-fired power plants at Lakhra envisage an investment of around S900
million or around Rs. 32 billion.. Proposals of numerous other power stations are also
under consideration.
Tractor Assembly Plant
A tractor assembly plant is being set up in upper Sindh at Lakhra as a joint venture
between Pakistan and Romania in the private sector. One hundred tractors in completely
knocked down condition are due to reach Karachi from Romania within the next two
months. The joint venture in tractor assembly which would ultimately lead to
manufacturing, hud been signed between a Pakistan firm G.M Brothers and the Universal
Tractors of Romania. The two collaborating firms had already signed an
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95
agreement to begin with the production of-10,000 tractor of 53 horse power. Universal
Tractors manufacture tractors under Fiat licence.
Oil Exploration Agreement
The Government of Pakistan has granted a petroleum exploration licence to UMC
Pakistan Corporation, a subsidiary of United Meridian Corporation of USA and
government holdings over Pasni Block covering 7480 sq. km. in District Gwadar and
offshore Mckran. The petroleum concession agreement for the above mentioned Block
was signed. The company will carry out geological and geophysical studies and drill and
exploration well during initial
3 years term with a financial commitment of US S4.45 million.
UMC is an independent oil and gas company incorporated in the state of Delaware, USA,
UMC's North American operations are concentrated in Gulf of Mexico, Gulf Coast, MidContinent and Rockies, USA and in Alberta and Saskatchewan, Canada. Besides the
company is also producing properties in Equatorial Guinea and Cota d Ivore in West
Africa. The proven oil and gas reserves of the company are equivalent to about 600
billion cubic feet. The total assets of the company are about US S 510 million and is rated
among the top 20 independent companies of USA.
Presently 20 local and foreign companies are engaged in petroleum exploration in the
cbuntry over 270,000 sq. kms. These include British Gas, Unocal Lasmo, OMV, BHP,
Unioiv Texas, PPL besides Oil and Gas Development Corporation. Another 4 blocks are
under procession for grant.
Pak-China Joint Venture
Isani Industries Ltd, has entered into a joint venture with a China's Yan Xing Xiamen
Coloration to set up an assembly and manufacturing plant for pick-ups and motorcycles
at a cost 9 million dollars. Initially a motorcycle assembly and manufacturing plant will
be set up with a capacity to manufacture 30,000 motorcycle* per year. The joint venture
also provides for setting up a pick-ups and light trucks manufacturing plant at Port Qasim
in Karachi or in Shikarpur to produces single and double cabin pick-ups and highroof
vehicles consuming dicsel as fuel. The production capacity of the plant will be 7000
vehicles of 8 hours working shift basis.