In a major development for Pakistan’s energy landscape, the government has greenlit the construction of the Chashma Nuclear Power Plant-5 (C-5). The project, with a large budget of Rs. 1.12 trillion, will contribute 1,200 MW to the country’s electricity supply. Led by the Pakistan Atomic Energy Commission (PAEC), the plant is expected to be operational within 81 months, boosting the nation’s energy security and reducing its dependence on fossil fuels.
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Project Details and Tariff Structure
The Chashma C-5 project stands out due to its advanced forced water reactor (PWR) design. After PAEC submitted a appeal, NEPRA approved a levelized tariff of Rs. 16.73 per unit for a 40-year period. A higher charge of Rs. 19.82 per unit is part of the tariff structure unit for the initial 12 years, which will then drop to Rs. 9.63 for the remaining 28 years.
This approach ensures cost-effectiveness in the long run and provides stability in electricity pricing, benefiting both consumers and industries. Furthermore, the plant’s output will help in meeting the growing energy demands of urban centers and industrial zones.
Financing and Bilateral Partnership with China
A significant portion of the project’s financing—81%—will come from commitment, while 19% will be funded through equity. China has stepped forward as a key partner by agreeing to provide loans at a low interest rate of 3%. The repayment terms include a 12-year repayment period along with an 8-year grace period.
This partnership highlights the strengthening economic ties between Pakistan and China, particularly in infrastructure and energy development. Such collaborations are dynamic for the timely execution of large-scale projects like Chashma C-5.
Detailed Budget Allocation
To ensure transparency and accountability, the project budget has been exactly planned. Out of the Rs. 1.12 trillion, Rs. 965.8 billion will be spent on EPC (Engineering, Procurement, and Construction) costs, Rs. 69.4 billion on non-EPC expenses, and Rs. Interest paid throughout the building phase totaled 89.5 billion.
Given the instability in exchange rates, the government has assumed the following rates for currency conversion: Rs. 280 per USD, Rs. 38.50 per RMB, and RMB 7.27 per USD. This conservative approach helps moderate financial risks and ensures better control over project costs.
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PAEC’s Proven Expertise in Nuclear Energy
The Pakistan Atomic Energy Commission has a commendable history of successfully running four nuclear power units at the Chashma site, each with a capacity of 300 MW. This experience ensures that the C-5 plant will be constructed and operated following international standards for safety and efficiency.
With decades of experience in nuclear energy, PAEC has developed a deep understanding of reactor technology and project management. This expertise will prove invaluable in completing the new plant within the stipulated timeline.
Long-Term Benefits for Pakistan
Once operational, the Chashma C-5 nuclear plant will significantly enhance the country’s energy mix by adding clean and sustainable power to the grid. This shift will reduce greenhouse gas emissions and dependence on expensive imported fuel.
In addition to environmental benefits, the project will generate numerous job opportunities during both the construction and operational phases, boosting the local economy. Moreover, the stable energy supply will support industrial growth and attract foreign investment in energy-intensive sectors.
Conclusion
The Chashma Nuclear Power Plant-5 is a monumental step forward in addressing Pakistan’s energy challenges. With robust financial backing, advanced technology, and PAEC’s expertise, the project promises a brighter and more sustainable future for the country.
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