ISLAMABAD: The federal government is reportedly formulating a strategy to address the contentious issue of K-Electric (KE) that has arisen following the recent disputed tariff determinations announced by the National Electric Power Regulatory Authority (NEPRA), Business Recorder has learnt.
A high-level and confidential meeting was held on Friday (October 24, 2025) at the Finance Ministry, attended by Finance Minister Senator Muhammad Aurangzeb, Power Minister Sardar Awais Ahmad Khan Leghari, officials of the Special Investment Facilitation Council (SIFC), and the three government-nominated directors on KE’s Board — Secretary Finance Imdad Ullah Bosal, Secretary Power Dr. Fakhre Alam Irfan, and Javed Kureishi.
The meeting took place a day after the Government of Pakistan received a legal notice from Saudi and Kuwaiti shareholders of KE. The notice was served in response to NEPRA’s recent determinations, which reduced KE’s tariff by Rs 7.60 per kWh — a move the company claims will have a financial impact of around Rs 150 billion per annum.
KE’s Alvi terms NEPRA’s revised tariff ‘unprecedented’, warns of operational strain
“I can confirm that the meeting was held on the KE issue at the Finance Ministry, but I am not privy to the details of the discussions or the government’s future course of action,” said an official privy to the matter.
In a related development, one of KE’s shareholders, Sheharyar Chishti, issued a statement criticizing KE’s management and downplaying the implications of the NEPRA decision.
“One may have seen the hysterical news and podcasts coming from KE, Al-Jomaih, and their paid PR agents. To cover up their own incompetence, they even want to malign and embarrass Pakistan by taking the matter to OIC arbitration. The reality is that NEPRA’s tariff is not bad — and I say this as KE’s largest shareholder. KE can still be a profitable company provided it has a competent management team, not the clown show that currently runs KE. The solution is a new CEO, not more money spent to malign Pakistan,” Chishti said.
He confirmed to Business Recorder that this statement was issued by him.
Some insiders believe that the “legal notice” issued by Saudi Al-Jomaih and Kuwait’s Denham Investments Limited, may have been deliberately made public by certain government circles to exert pressure on KE’s Board as strategy to take “appropriate decisions.”
Observers also noted that NEPRA’s stance during hearings appeared markedly different from the final decision that was later issued.
Speaking to Business Recorder, Chishti further said that NEPRA has fulfilled its responsibility on tariff matters, and it is now up to KE to ensure affordable electricity for consumers. He added that M/s Al-Jomaih had sold its shares 16 years ago to the Abraaj Group, which was later acquired by AsiaPak. “One can confirm the current shareholding from the Securities and Exchange Commission of Pakistan,” he noted.
He further contended that the legal notice is a joke as it says that the government had failed to approve the USD1.77 billion sale of K-Electric’s shares to Shanghai Electric Power which is why a notice of USD2 billion is served.
Copyright Business Recorder, 2025
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