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.