K-Electric Distances Itself from Pakistan’s Circular Debt Crisis

K-Electric (KE) has firmly rejected any role in Pakistan’s spiraling circular debt crisis, distancing itself from a chronic issue crippling the nation’s power sector. In a forceful statement released on Friday, a KE spokesperson underscored that, as a privatised utility, the company is not entangled in the web of liabilities fueling the Rs2.7 trillion debt burden, a claim endorsed by major international institutions.

Amid mounting government pressure to tackle power sector inefficiencies, KE clarified that the circular debt—driven by payment delays among state-run power producers, distribution companies, and fuel suppliers—does not involve the privately-operated, vertically integrated utility. Unlike state entities, KE operates without government subsidies, independently managing its generation, transmission, and distribution for Karachi and its surrounding areas.

KE stressed that timely approval and payment of its legitimate financial claims would strengthen its cash flows, enabling accelerated investments in infrastructure upgrades for a more reliable power supply. The company remains in active discussions with the National Electric Power Regulatory Authority (NEPRA) to resolve its financial claims and advance its investment plans.

Founded in 1913 as the Karachi Electric Supply Company (KESC) and privatised in 2005, KE is Pakistan’s only vertically integrated power utility. KES Power, a consortium of Al-Jomaih Power Limited (Saudi Arabia), National Industries Group (Kuwait), and the Infrastructure and Growth Capital Fund (IGCF), holds a 66.4% stake, while the Government of Pakistan owns 24.36%, with the remainder traded on the Pakistan Stock Exchange.