Karachi October 4 2023: K-Electric, Pakistan's largest electricity provider is actively seeking foreign financial support to address the escalating power demand, amidst the ongoing energy crisis the country is grappling with.
K-Electric Ltd.'s CEO, Moonis Abdullah Alvi, disclosed that the company is presently engaged in discussions with overseas financial institutions, aiming to secure a funding range of $350 million to $400 million.
K-Electric, the electricity distributor for Karachi, is currently awaiting government approval for a comprehensive $2 billion capital investment plan spanning the next seven years. This strategic plan is designed to bolster their renewable energy capacity, with the goal of reaching a 30% share of renewables by 2030, while also expanding overall generation capacity and enhancing the power grid.
These initiatives are being pursued against the backdrop of Pakistan's energy woes, exacerbated by a fuel shortage triggered by Russia's invasion of Ukraine, which led to a significant surge in energy prices. Household electricity rates have risen substantially over the past year, resulting in widespread protests across the nation.
Furthermore, K-Electric is preparing for increased competition, as its monopoly in Karachi is set to expire this year. To ensure a reliable electricity supply, the company is considering the acquisition of minority stakes, less than 20%, in new power plants and is exploring the conversion of existing fuel oil power plants to coal, as revealed by CEO Alvi.