K-Electric eyes $400 mn overseas funding to address growing energy demand

Karachi-based power distributor is also seeking government approval for a $2 billion capital expenditure plan to raise its renewable energy capacity to 30% by 2030.

K-Electric Ltd. is actively pursuing international financial support, aiming for a funding range of $350 million to $400 million, as reported by Bloomberg. This move comes as Pakistan grapples with an energy crisis and soaring power prices.

The Karachi-based power distributor is also seeking government approval for a substantial $2 billion capital expenditure plan spanning seven years. This initiative aims to achieve key objectives, including raising renewable energy capacity to 30% by 2030, expanding overall generation capacity, and reinforcing the power grid.

Furthermore, with its monopoly in Karachi ending this year, K-Electric is preparing for heightened competition. The company is exploring options like acquiring minority stakes (below 20%) in new power plants to ensure a consistent electricity supply. Additionally, there are plans to convert fuel oil power plants to more sustainable coal-based operations, according to CEO Moonis Abdullah Alvi.

These efforts respond to Pakistan’s recent financial instability, exacerbated by a fuel shortage following Russia’s invasion of Ukraine, which sent energy prices surging and triggered nationwide protests due to increased household electricity rates.

K-Electric Ltd.’s proactive measures offer hope for addressing Pakistan’s energy challenges and steering towards a diversified and sustainable energy future amidst ongoing uncertainties.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

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