ISLAMABAD: Prime Minister Shahid Khaqan Abbasi held a meeting with Council of Pakistan Newspaper Editors (CPNE) on Monday in Islamabad during which he informed the members regarding the upcoming improvements in the security in Karachi.
The meeting was on the role of power utility in improving law and order, but the prime concern was on K-Electric’s tariff that has been significantly reduced.
He mentioned that K-Electric’s would not be able to sustain operation or invest in power infrastructure in its future. This would significantly set back the progress made in Karachi in the revival of industrial growth and improved law and order situation.
The prime minister said that Shanghai Electric (SEP) who has publicly announced its interest in acquiring KE with the investment plan for $9 billion would be terminated. SEP’s plan is critical to encourage foreign investment in the country and this will also be a game changer in the power sector of Pakistan.
Highlighting the magnitude of investment, the PM said, “The SEP is a strategic power utility operator and will benefit metropolitan in terms of improved and reliable supply of power.”
The government and the regulator should create an investor-friendly environment, he added.
On this issue, the prime minister went on to say that “the government understands the need for investment in power infrastructure of the city and its implications on country’s economy”.
Abbasi said that he was aware of K-Electric’s issue and assured the group that the government supports a right tariff regime of KE, which ensures continuity of government policies, provides incentives for performance improvement and offers a reasonable return.
The PM said that the state owns 24 per cent share in KE and hence has a vested interest in KE as a shareholder.
He also mentioned that Abraaj Group is a private equity firm, whose business model is to turn loss-making companies into sustainably profitable entities and then sell it to a specialised operator and earn a responsible return.
