Geothermal energy in Pakistan: an untapped strategic resource

As the world accelerates toward cleaner and more reliable energy systems, geothermal energy is rapidly emerging as one of the most promising renewable resources of the future. International media has recently described the global race for geothermal development as a “new gold rush for geothermal energy,” driven by the growing need for uninterrupted, low-carbon electricity and industrial heat.

Countries across the world are investing billions of dollars into advanced geothermal technologies that can provide stable baseload energy unlike solar and wind, which remain dependent on weather conditions.

• Geothermal energy is a renewable, low-carbon power source generated by the natural heat stored beneath the Earth’s crust

Pakistan, despite possessing considerable geothermal indicators across multiple regions, remains largely absent from this global transition. The country has yet to formulate a comprehensive geothermal policy, regulatory framework, or investment roadmap. This lack of institutional direction continues to discourage investors and prevents the utilisation of a potentially transformative indigenous energy resource.

The utilisation of alternative energy sources has become a strategic necessity worldwide because of several interconnected challenges: rapidly increasing global energy demand, climate change caused by fossil fuel emissions, and dependence on imported fuels. Geothermal energy offers an important solution to all three challenges.

Geothermal energy is essentially the heat stored beneath the Earth’s surface. This heat originates from the planet’s formation, radioactive decay within the Earth, and tectonic activity. The geothermal gradient — the temperature difference between the Earth’s core and surface — continuously transfers thermal energy toward the surface. This natural heat can be harnessed for electricity generation, industrial heating, agriculture, desalination, and numerous other applications.

Globally, geothermal energy is considered among the cleanest and most reliable renewable energy sources. According to international studies, geothermal power emits only about 91 grams of CO₂ per kilowatt-hour of electricity generated, compared to approximately 600 grams for natural gas, 900 grams for oil, and nearly 1,000 grams for coal. In addition to being environmentally favorable, geothermal energy provides round-the-clock electricity generation, unlike intermittent renewable sources.

Two major geothermal systems are commonly employed around the world.

The first involves drilling two or more wells into deep hot formations. Fluids are injected into one well, circulate through heated underground rocks, and return to the surface through another well as steam or superheated fluids capable of operating turbines. This method is commonly used in Enhanced Geothermal Systems (EGS). Countries such as Iceland, New Zealand, and the United States have successfully deployed such technologies.

The second system utilises naturally occurring hot water or steam reservoirs. In this method, wells are drilled directly into geothermal reservoirs where hot fluids naturally rise to the surface and are used either for electricity generation or direct heating applications. Countries such as Kenya, Indonesia, and Philippines have developed large geothermal industries using this approach. Pakistan’s geological setting suggests that similar opportunities may exist across several regions of the country.

Among the most promising geothermal regions is Koh-e-Sultan in Chagai District. The area lies within the tectonically active Chagai Volcanic Arc, formed by the northward subduction of the Arabian Plate beneath the Lut and Afghan blocks. This tectonic interaction has created volcanism, hot springs, mud volcanoes, and geothermal manifestations across western Balochistan.

A concept paper prepared for Balochistan Energy in 2022, mentioned that the heat generated by rising magma beneath the Chagai Volcanic Arc and Ras Koh Range may support economically exploitable geothermal reservoirs suitable for electricity generation.  The paper also highlighted that the Makran Accretionary Wedge, extending roughly 900 kilometers, represents one of the most geologically complex and promising geothermal regions in Pakistan.

The Koh-e-Sultan geothermal system contains acidic alteration zones, silicified segments, hydrogen sulphide emissions, and sulphur deposits — all classic indicators of geothermal activity. Surface spring temperatures in the area range between 25.6 °C and 36 °C, while reservoir temperatures estimated through silica geothermometry are believed to lie between: 150 °C to 175 °C. These temperatures are considered commercially promising for geothermal power generation.

In colder northern regions, geothermal energy could support district heating systems, greenhouse agriculture, tourism infrastructure, and small-scale industries while reducing dependence on imported fuels and diesel generators.

The strategic significance of Koh-e-Sultan becomes even greater due to its proximity to major mining and mineral projects including Reko Diq and Saindak. As downstream industries linked to copper, gold, and other minerals develop in western Balochistan, geothermal energy could provide a localised and sustainable power source for mining operations, mineral processing, desalination plants, industrial zones, and future settlements.

This creates an ideal example of “edge energy” — electricity produced close to the point of consumption. Instead of constructing expensive long-distance transmission systems across remote terrain, geothermal power could directly support industrial development where energy demand exists. Such a model would reduce transmission losses, lower infrastructure costs, and improve energy reliability in one of Pakistan’s most strategically important but underdeveloped regions.

Beyond Balochistan, significant geothermal indicators also exist in northern Pakistan. In Gilgit-Baltistan and Chitral, the collision between the Indian and Eurasian tectonic plates has produced numerous high-temperature hot springs including Garam Chashma, Murtazabad, and Tatta Pani. Temperatures reported in some of these geothermal systems range between 198 °C to 212 °C.

Such temperatures are highly attractive for both electricity generation and direct-use heating applications. In colder northern regions, geothermal energy could support district heating systems, greenhouse agriculture, tourism infrastructure, and small-scale industries while reducing dependence on imported fuels and diesel generators. This is also true that some of these northern regions may be more suited for cheaper run-of-the-river electricity projects than geothermal energy.

Another underexplored opportunity exists in Sindh, particularly along the margins of the Indus Basin. Oil and gas exploration activities have identified geothermal waters associated with deep hydrocarbon reservoirs. Reported temperatures in some formations range approximately between 80 °C to 170 °C. These temperatures may be suitable for low-to-medium enthalpy geothermal systems and several industrial applications including food processing, desalination, aquaculture, greenhouse farming, and industrial heating.

Importantly, Pakistan’s existing oil and gas sector provides a major advantage for geothermal development. Many deep exploratory wells drilled over decades have already encountered high-temperature formations. Around the world, depleted or marginal hydrocarbon wells are increasingly being repurposed for geothermal use, reducing drilling costs substantially.

In Pakistan, gas fields in Sindh have attracted foreign interest in the recent past for geothermal development. However, the projects failed to materialise due to the absence of a clear legal and policy framework. Similarly, deep well drilled in Sui have also indicated elevated subsurface temperatures and may offer opportunities for geothermal pilot projects. While planning for exploration of the deeper hydrocarbon potential at Sui, it would be appropriate to keep dual targets in mind — hydrocarbons and geothermal energy.

The 2022 concept paper for Balochistan Energy also outlined a practical roadmap for geothermal exploration. It emphasised the need for deep exploratory drilling, heat-flow testing, flow testing, formation evaluation, and core analysis to determine reservoir characteristics and production potential. In case of successful discovery, step-out wells could then establish reservoir size, longevity, and commercial viability before designing appropriate power plants and production facilities.

At a time when the world is entering a new phase of geothermal expansion, Pakistan can either continue overlooking its geothermal resources or move decisively toward exploration and commercialisation.

Financially, geothermal development depends on reservoir temperature, drilling depth, production rates, plant efficiency, operational costs, and long-term reservoir sustainability. Like oil and gas exploration, geothermal projects involve exploration risks, particularly during the drilling phase.

The global geothermal industry is expected to witness investments worth tens of billions of dollars over the coming decade. Advanced drilling methods developed originally for the oil and gas sector, including horizontal drilling and hydraulic stimulation — are now being adapted for geothermal applications by companies in the United States and Canada. This technological convergence is particularly important for Pakistan because much of the required technical expertise already exists within its petroleum sector. Dual target wells discussed above may also be considered as cost effective solution.

Despite these opportunities, geothermal energy remains absent from Pakistan’s mainstream energy planning. No dedicated geothermal policy exists. There are no clear licensing rules, fiscal incentives, resource ownership frameworks, or institutional mechanisms for geothermal exploration and development. Perhaps, some provisions within the Petroleum Policy may also be considered to encourage development geothermal resources in Pakistan.

Pakistan therefore faces a strategic choice. At a time when the world is entering a new phase of geothermal expansion, the country can either continue overlooking its geothermal resources or move decisively toward exploration and commercialisation. With rising energy demand, increasing fuel import bills, and the need for sustainable industrial development, geothermal energy deserves immediate national attention.

Pakistan’s geology suggests that the resource may already exist beneath its soil. What remains missing is the vision, policy, and commitment!

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