LAHORE: K-Electric CEO Moonis Abdullah Alvi on Thursday said had Karachi Electric Supply Company (KESC) not been privatized, Pakistan’s current circular debt would have been doubled.
While addressing a seminar here, Alvi praised the government efforts to privatize DISCOs and the inclusion of sane advisors, asserting that this move would enhance both operational efficiency and financial stability.
He said the company’s electricity distribution and transmission losses, which stood at 38% during privatization, have now been reduced to 15%.
Privatization key solution for power sector’s challenges: experts
Alvi acknowledged that K-Electric’s privatization process was challenging but has since driven significant improvements in performance.
Post-privatization, the company optimized its workforce, doubled its consumer base and transmission capacity, and introduced major reforms in its digital payment systems. Currently, two out of every three payments are made digitally, with 2.2 million consumers connected via digital platforms.
The CEO also highlighted ongoing challenges in Karachi’s Katchi Abadis (informal settlements), where recovery rates in some areas are as low as 5%, accompanied by 90% losses. However, he clarified that even in these high-loss zones, the company prioritizes protecting consumers who pay their bills regularly, ensuring they face no disruptions.
In a landmark achievement, K-Electric conducted a competitive bidding process for 640-megawatt renewable energy projects, receiving 27 bids. This marked Pakistan’s first successful competitive bidding initiative of its kind, with the company securing the country’s lowest bid for renewable energy projects. Alvi termed this a reflection of investor confidence and expressed optimism about future ventures.
Copyright Business Recorder, 2025
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