K-Electric's multi-year tariff — why does the government have an issue with it?

K-Electric recently lodged a petition for approval of a new multi-year tariff with the National Electric Power Regulatory Authority. NEPRA would hold a hearing on it, like it usually does, and a verdict on the final tariff would be announced. Pretty standard, right?

Well ... not quite.

The federal government is on a mission to reduce power prices and has some strong objections to K-Electric's petition.

Is K-Electric in the wrong or is the power company justified in its demands? Nukta reached out to economic analyst Ammar Habib Khan and Arif Habib Limited's Head of Equities Tahir Abbas to find out.