K-Electric (KE) has reiterated that it holds no involvement in Pakistan’s circular debt, distancing itself from a problem that has long plagued the country’s power sector. In a statement issued on Friday, a company spokesperson emphasised that KE, as a privatised utility, is not part of the chain of liabilities that contribute to the growing debt crisis—an assertion the utility says is backed by major international institutions.
The statement comes at a time when the government is under increasing pressure to address inefficiencies in the power sector, particularly the circular debt that has surpassed Rs2.7 trillion. Much of this debt stems from delays in payments among power producers, distribution companies, and fuel suppliers, with state-run entities primarily involved. KE, being a privately-operated and vertically integrated utility, does not receive government subsidies for operational costs and manages its generation, transmission, and distribution independently.
The utility further asserted that the timely approval and payment of its legitimate financial claims would help stabilise its cash flows. This, it said, would allow for accelerated investment in infrastructure upgrades and lead to a more reliable power supply for Karachi and surrounding areas. The company confirmed that it remains in active dialogue with the National Electric Power Regulatory Authority (NEPRA) regarding its financial claims and investment plans.
K-Electric was incorporated in 1913 as Karachi Electric Supply Company (KESC) and was privatised in 2005. It remains the only vertically integrated power utility in Pakistan, responsible for supplying electricity to the country’s largest metropolitan region. The majority of its shares (66.4%) are held by KES Power, a consortium comprising Al-Jomaih Power Limited (Saudi Arabia), National Industries Group (Kuwait), and the Infrastructure and Growth Capital Fund (IGCF). The Government of Pakistan retains a 24.36% stake, with the rest publicly traded on the Pakistan Stock Exchange.
