Pakistan’s energy sector is grappling with a multifaceted crisis that extends beyond mere power shortages. The nation faces escalating circular debt, an annual petroleum import bill exceeding $15 billion, and a grid infrastructure that loses nearly 20% of generated electricity before it reaches consumers. Despite an installed capacity of approximately 46,000 megawatts, actual generation averages around 14,000 to 15,000 megawatts, highlighting a significant underutilization of resources.
This persistent energy deficit is exacerbated by inefficiencies such as underutilized power plants, outdated transmission systems, and the financial strain of “take-or-pay” contracts with independent power producers (IPPs). These agreements obligate the government to make capacity payments in foreign currency, irrespective of actual electricity generation, thereby perpetuating the cycle of circular debt.
In response to this energy conundrum, experts suggest that Pakistan should consider the adoption of Small Modular Reactors (SMRs) and portable microreactors. Unlike traditional large-scale nuclear plants, SMRs are designed for factory-based construction, modular deployment, and faster installation, offering a more flexible and cost-effective approach to nuclear energy.
SMRs present several advantages: they can be deployed to power industrial clusters, remote mining operations, or desalination plants, providing a stable and reliable energy source. Additionally, their smaller size and design allow for reduced water usage, making them suitable for arid regions like Pakistan.
However, the implementation of SMRs is not without challenges. The technology is still in the early stages of commercial deployment globally, and Pakistan would need to navigate complex financing, safety regulations, and international oversight to integrate SMRs into its energy mix.
Despite these hurdles, the potential benefits of SMRs—such as reducing dependence on imported fuels, stabilizing the national grid, and leveraging existing nuclear expertise—make them a compelling option for Pakistan’s energy future.
