By Mr. Khalid Taimur Akram, Executive Director, Pakistan Research Center for a Community with Shared Future (PRCCSF), Islamabad:
Addressing Pakistan’s Energy Crisis: A Decade of Progress Under CPEC: For decades, Pakistan faced crippling energy shortages that stifled economic growth and hindered industrial productivity. However, a turning point came with the launch of the China-Pakistan Economic Corridor (CPEC), under which $35 billion has been allocated to energy projects. Through this initiative, Chinese companies have played a transformative role in addressing Pakistan’s energy crisis, paving the way for a brighter, sustainable future.
Transforming Pakistan’s Energy Sector: CPEC energy projects, contributing over 10,400 MW of electricity, encompass a diverse mix of coal, solar, wind, and hydropower initiatives. This diversification has not only alleviated Pakistan’s energy shortfall but also reduced costs, improved generation efficiency, and provided the foundation for industrial expansion.
Over the past 11 years, Chinese companies have contributed over 8,700 MW of capacity, resulting in the generation of 229.8 billion kWh of electricity by September 2024. Beyond infrastructure, these projects have spurred job creation, economic growth, and community engagement, reflecting Chinese firms’ commitment to corporate social responsibility.
Major Contributions to Pakistan’s Energy Landscape:
1. China Power Hub Generation Company (CPHGC): A joint venture between China Power International Holdings (CPIH) and HUBCO, CPHGC operates a 1,320 MW coal-based power plant in Hub, Balochistan. The project, valued at $1.9 billion, provides electricity to over 4 million people. The plant has generated over 23 billion kWh of cleaner energy while maintaining environmental sustainability by creating a “desert oasis” around its facility.
2. Port Qasim Coal Power Plant: With an installed capacity of 1,320 MW, this plant began operations in 2018 with a $2.08 billion investment. It generates 9 billion kWh annually, reducing Pakistan’s energy deficit and bolstering industrial productivity.
3. China Energy Engineering Group: This group has spearheaded projects like the 884 MW Suki Kinari Hydropower Station and the Neelum Jhelum Hydropower Project. These initiatives harness Pakistan’s water resources, contributing to clean, renewable energy and reducing reliance on fossil fuels.
4. Huaneng Shandong Ruyi Energy Ltd.: The 1,320 MW Sahiwal Coal Power Plant, operational since 2017, meets the electricity needs of 20 million people annually. It has stabilized power supplies, fostering both industrial and residential development.
5. Matiari-Lahore HVDC Transmission Project: Operational since 2021, this 660 kV transmission line, spanning 886 km, has an evacuation capacity of 4,000 MW with minimal transmission losses. It ensures a reliable power supply to northern regions, benefiting 10 million households and reducing strain on the national grid.
6. China Three Gorges South Asia Investment: The 720 MW Karot Hydropower Project, operational since 2022, leverages the Jhelum River to generate 3.2 billion kWh annually, supporting sustainable energy efforts.
7. Shanghai Electric and CMEC in Thar: Shanghai Electric’s 660 MW Engro Power Thar Project and CMEC’s Thar Block-II Coal Mines Project have tapped into local coal reserves, reducing reliance on imports and uplifting the Thar region economically.
Long-Term Impact and Sustainability: These projects are designed with sustainability in mind. Hydropower plants will be handed over to provincial governments free of cost after 30 years of operation, ensuring long-term energy stability. Additionally, tariffs are expected to drop by 50% in 10–12 years, easing the national economic burden.
Beyond energy generation, these projects have created thousands of jobs, revitalized local industries, and improved infrastructure across Pakistan. The emphasis on renewable energy underscores a commitment to environmental preservation and sustainable development.
A Symbol of China-Pakistan Cooperation: CPEC’s energy projects embody the enduring partnership between China and Pakistan, showcasing their shared vision for progress. Through world-class technology, strategic investments, and unwavering dedication, China has illuminated Pakistan’s path toward a stable and prosperous energy future.
This collaboration is a testament to the strength of China-Pakistan relations, leaving a legacy of resilience and progress for generations to come.
