ISLAMABAD: The federal government is developing a comprehensive plan to address the ongoing dispute between K-Electric (KE) and the National Electric Power Regulatory Authority (NEPRA) following the recent controversial tariff determinations, sources told Business Recorder.
A high-level meeting was held on October 24, 2025, at the Finance Ministry, chaired by Finance Minister Senator Muhammad Aurangzeb and Power Minister Sardar Awais Ahmad Khan Leghari. The session was also attended by officials from the Special Investment Facilitation Council (SIFC) and government-nominated directors on KE’s board — Secretary Finance Imdad Ullah Bosal, Secretary Power Dr. Fakhre Alam Irfan, and Javed Kureishi.
The meeting followed the receipt of a legal notice from KE’s Saudi and Kuwaiti shareholders, challenging NEPRA’s decision to reduce KE’s tariff by Rs7.60 per kWh, which the company claims would cause a financial loss of Rs150 billion annually.
While officials confirmed the meeting took place, they refrained from disclosing details of the government’s next steps. However, sources indicated that the issue is being treated as a priority matter due to its potential implications for investor confidence and power sector stability.
Meanwhile, KE shareholder Sheharyar Chishti issued a strong statement criticizing the utility’s current management and dismissing the legal notice as “misguided.” He accused KE’s foreign shareholders and public relations teams of attempting to “malign Pakistan” through arbitration threats and insisted that NEPRA’s decision was fair, asserting that KE could remain profitable under competent management.
Chishti also clarified that Al-Jomaih had divested its KE shares 16 years ago to the Abraaj Group, which was later taken over by AsiaPak, suggesting that the legal notice lacked legitimacy.
Industry observers believe the leak of the legal notice may have been deliberate, possibly intended to pressure KE’s board into taking corrective decisions. They also noted inconsistencies between NEPRA’s conduct during tariff hearings and its final verdict.
Government officials are expected to finalize a resolution framework in the coming days to prevent the dispute from escalating further, ensuring the protection of consumer interests while maintaining investor confidence in Pakistan’s power sector.
Story by Mushtaq Ghumman
