K-Electric announces $2 billion investment plan to modernize power sector

K-Electric (KE), Pakistan’s only vertically integrated power utility, held a corporate briefing Monday at the Pakistan Stock Exchange (PSX), reaffirming its commitment to reliable, affordable, and sustainable power supply for Karachi and its surrounding areas.

The session provided stakeholders, analysts, investors and members of the media with a comprehensive update on KE’s operational progress, recently announced tariff decisions by the regulator, and the company’s strategic direction.

During the briefing, KE presented its recently approved multi-year tariff (MYT) for fiscal years 2024–30, which enables the execution of a proposed $2 billion investment plan to modernize and expand Karachi’s power infrastructure.

The utility also discussed its progress in renewable energy development, having successfully completed competitive bidding for 640 megawatts of renewable projects.

These include landmark bids such as the 220 MW hybrid solar-wind project at Dhabeji, awarded at a record-low tariff of PKR 8.92 per kilowatt-hour, which has been approved along with the 150 MW Winder-Bela solar projects.

In line with its goal to diversify the energy mix and reduce reliance on expensive fuels, KE aims to integrate a 30% renewable energy share into its generation mix by 2030.

“K-Electric’s multi-year tariff approval enables us to unlock critical investments in infrastructure to ensure safe and reliable power supply. The approved tariff will allow us to build on our commitment to operational efficiency, sustainability, and community outreach,” K-Electric Chief Financial Officer Muhammad Aamir Ghaziani said.

“With many misgivings surrounding the approved tariff, I want to stress that this approval will not impact consumer-end rates, which are governed under the government of Pakistan’s uniform tariff policy.”

Since privatization in 2005, KE has reinvested all profits and allocated more toward infrastructure improvements.

These investments have resulted in major enhancements across the power value chain, including a 104% increase in transmission capacity, a 2.3 times growth in distribution capacity, an 18.2% reduction in transmission and distribution losses, and a 16 percentage-point improvement in generation efficiency.

KE’s grid infrastructure has expanded from 52 to 74 grid stations, and load-shedding exemptions have grown from 6.6% in 2005 to 70% today.
Most notably, the company’s aggregate technical and commercial (AT&C) losses have dropped from 43% in 2009 to 23.1% in 2024.
KE also addressed broader sectoral challenges during the session, including the non-provision of local gas, which impacts a significant portion of KE’s tariff.
The company emphasized that it has zero contribution to the current burden of circular debt, which is driven by inefficiencies in public distribution companies.
KE stressed that privatization and performance-based accountability—backed by regulatory and policy support—remain vital for long-term sectoral sustainability.