The Prime Minister’s Office has asked the Power Division to submit its comments on a dispute notice issued by Saudi and Kuwaiti investors of K-Electric under the OIC Investment Agreement, Business Recorder reported.
The direction comes at a time when internal divisions within K-Electric’s board have left several corporate matters unresolved. Both Al-Jomaih and Denham Capital, the utility’s major foreign investors, have already served a $2 billion notice on the government, prompting concerns about possible international arbitration. Deputy Prime Minister Ishaq Dar has been tasked with handling issues relating to Al-Jomaih during engagements with Saudi authorities.
The investors have now signalled their intention to move to the next stage. According to the investors, delays in implementing NEPRA’s 2025 multi-year tariff determinations, non-payment of tariff differential subsidies, and regulatory inaction by the SECP, SBP and FIA have caused significant and ongoing financial, regulatory, and reputational harm to their investment. They have also alleged that their governance rights in K-Electric are being impaired.
The firm also attached a letter sent by Al-Jomaih Power Limited (AJPL) and Denham to K-Electric’s board on November 9, objecting to efforts to convene a board meeting and change management, including the proposed appointment of a new CEO. The investors argue that such steps would violate Sindh High Court orders and undermine their investment.
They further claim that the government, both as a shareholder and through its nominated directors, is aware of the situation but has not acted to prevent these moves. Steptoe warned that continued inaction could aggravate breaches of Pakistan’s obligations to ensure fair treatment and legal stability.
The investors have asked the government to nominate an authorised representative and propose negotiations by November 14, 2025, failing which they will proceed to constitute the arbitral tribunal as allowed under Article 17(3).
It remains unclear whether the government has formally responded to the notice.
