Why is the Pakistani government proceeding with a nuclear power plant in collaboration with China? Why hasn't Beijing pursued exemptions from the Nuclear Suppliers Group? What will be the impact on nuclear commerce governance?
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China and Pakistan recently signed a $4.8 billion agreement for a 1,200 MW nuclear power plant in Pakistan's Chashma nuclear complex. This deal is significant as Pakistan grapples with an energy and economic crisis. However, China's decision to proceed with the deal without seeking waivers from the Nuclear Suppliers Group (NSG) raises concerns about the global governance of nuclear commerce.
What is the latest deal?
Pakistan's Prime Minister, Shehbaz Sharif, witnessed the signing of an agreement for the construction of a 1,200 MW nuclear plant, the fifth reactor at the Chashma nuclear complex. The financial details were not disclosed, but China provided special concessions for financing due to Pakistan's financial crisis. The new reactor, C-5, will be the largest at Chashma and will utilize China's Hualong One reactor, which is already operational in two plants in Karachi.
How many other nuclear plants has China built for Pakistan?
Pakistan currently operates six nuclear plants, four at the Chashma complex and two at the Karachi Nuclear Power Plant (KANUPP), with the oldest reactor decommissioned. The Hualong One reactor, with a capacity of 1,100 MW, is used in KANUPP-2 and KANUPP-3. The energy sector in Pakistan faces deficits, financial crises, and increasing import bills, leading to the need for more renewables and nuclear energy. The country aims to increase the share of renewables to 30% by 2030. Currently, thermal sources dominate the energy mix at 61%, followed by hydropower at 24%, nuclear at 12%, and wind and solar at only 3%. The gross capacity of nuclear plants has been expanding by 39% annually, reaching 3,530 MW.
What are the broader implications?
China's civilian nuclear projects with Pakistan have raised concerns due to the Nuclear Suppliers Group's (NSG) prohibition on transferring nuclear technology to countries outside the nuclear Non-Proliferation Treaty (NPT). While China argues that previous deals with Pakistan pre-date its NSG membership, critics point out that China has not sought a waiver from the NSG like India did for its nuclear deal with the U.S. The India-U.S. deal required commitments such as IAEA safeguards, separation of civilian and military programs, and a testing moratorium. China's recent deals with Pakistan have raised questions about the global rules governing nuclear commerce and the future of the NSG.
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