ISLAMABAD: K-Electric (KE) Limited has announced that it is no longer a party to a major legal case after Al Jomaih Power Limited and other plaintiffs withdrew their claims, leading to the dismissal of all related proceedings by a Karachi court. Despite this development, KE remains unable to hold board elections due to continuing judicial restraints and a standing regulatory directive from the Securities and Exchange Commission of Pakistan (SECP).
In a material information disclosure submitted to the Pakistan Stock Exchange (PSX) and the SECP on January 26, 2026, KE said that the senior civil judge, Karachi South, through an order dated January 23, 2026, allowed the withdrawal application filed by Al Jomaih Power Limited and others in Civil Suit No. 1566 of 2025. As a result, the suit against KE and all pending applications were dismissed as withdrawn and declared infructuous, effectively discharging the company from those proceedings.
However, the broader legal dispute remains unresolved. While Al Jomaih Power Limited withdrew its claims against IGCF SPV 21 Limited, Alvarez & Marsal, KES Power Limited and KE, the stay order obtained by Al Jomaih continues to apply against the National Electric Power Regulatory Authority (NEPRA), the SECP and the Power Division, keeping key regulatory aspects of the case alive.
The litigation has been closely watched due to its potential implications for governance and control at Pakistan’s largest power distribution company. Legal experts caution that the latest court order does not provide KE with immediate governance flexibility.
According to a legal expert familiar with the matter, KE is still a respondent in a separate but similar case pending before the courts, under which it is expressly restrained from making any changes to the composition of its Board of Directors. In addition, a regulatory direction issued by the SECP remains in force.
The SECP directive, issued on November 8, 2022, under Section 125 of the Securities Act, 2015, states that the board’s composition “shall not be changed whatsoever, till further orders of the Commission.” The restriction was imposed following concerns over changes in indirect ownership and control, particularly involving KES Power Limited and the acquisition of controlling interests by Sage Venture Group.
As a result, board elections at K-Electric are unlikely in the near term. The company did not respond to queries by the time of filing.
