Pakistan’s long-standing ownership battle over K-Electric has finally ended, with Saudi investors taking charge after months of disputes. The government, through the Special Investment Facilitation Council, helped broker the agreement where Pakistani businessman Sheheryar Chishty handed over his stake to Saudi Prince Mansour bin Mohammed Al Saud on October 13, 2025, in a move set to boost foreign investment in the country’s power sector.
Background of K-Electric’s Privatization
K-Electric, Pakistan’s only vertically integrated power utility, serves millions in Karachi and nearby areas. It handles everything from generating power to distributing it, making it a key player in the nation’s energy landscape.
The company was privatized back in 2005 under the Musharraf government. A group led by Saudi Arabia’s Al-Jomaih Group and other investors bought a major stake for about 15.9 billion rupees. This marked the start of foreign involvement in Pakistan’s power reforms.
Over the years, K-Electric has faced ups and downs. It improved services in some ways but struggled with losses and public complaints about high bills and outages. Saudi and Kuwaiti shareholders have held interests since the beginning, shaping the company’s direction.
Recent years brought more changes. In 2022, Sheheryar Chishty, through his firm AsiaPak Investments, acquired a big chunk from the collapsed Abraaj Group. This move sparked tensions with existing investors.
The Ownership Dispute Explained
The fight over K-Electric’s control heated up when Chishty bought into KES Power Limited, the parent company. Saudi investors questioned his funding sources and saw it as a threat to their influence.
Legal battles followed, with claims and counterclaims in courts. The dispute even drew in diplomats from Saudi Arabia and Kuwait, who pushed Pakistan’s government for action.
Key issues included:
- Control over board decisions and daily operations.
- Concerns about transparency in share transfers.
- Fears that the standoff could scare away future investments.
Government officials noted the row risked broader economic ties with Gulf nations. Prime Minister Shehbaz Sharif reportedly reached out to Riyadh to smooth things over.
This wasn’t the first hurdle. Earlier, a Chinese firm, Shanghai Electric, tried for nine years to buy into K-Electric but backed out in 2025 amid delays and regulatory issues.
The conflict highlighted Pakistan’s power sector woes, like aging infrastructure and rising demand. It also showed how corporate fights can spill into national policy.
How the Deal Was Resolved
The breakthrough came through the Special Investment Facilitation Council, a body set up to attract foreign cash. A high-level committee, including ministers for energy, privatization, and law, mediated talks.
Under the agreement, Chishty transferred his 53.8 percent stake in KES Power to Prince Mansour. This gives Saudis a controlling 66.4 percent overall in K-Electric.
The deal was signed at the Sindh Chief Minister’s house in Karachi. It includes plans for over one billion dollars in investments to upgrade the utility.
Officials say this ends a convoluted saga that lasted over a decade. Diplomatic efforts played a big role, with Saudi Arabia expressing irritation over delays.
No official notice has reached K-Electric yet, but spokespeople confirm the shift. The resolution aligns with Pakistan’s push for Gulf investments amid economic challenges.
Key Details of the Agreement
The deal brings fresh hope for K-Electric’s future. Here’s a quick look at the main elements:
| Aspect | Details |
|---|---|
| Buyer | Saudi Prince Mansour bin Mohammed Al Saud |
| Seller | Sheheryar Chishty via AsiaPak Investments |
| Stake Transferred | 53.8% in KES Power Ltd |
| Total Saudi Control | About 66.4% in K-Electric |
| Investment Promised | Over $1 billion for upgrades |
| Mediator | Special Investment Facilitation Council (SIFC) |
| Location of Signing | Sindh Chief Minister’s House, Karachi |
| Date | October 2025 |
This table shows the core facts, based on recent reports from Pakistani media.
Implications for Pakistan’s Power Sector
This takeover could transform Pakistan’s energy scene. Saudi funds might fix chronic issues like load-shedding and inefficient plants.
It signals stronger ties with Saudi Arabia, part of Vision 2030 goals. Pakistan hopes this draws more investments in renewables and grids.
However, challenges remain. Public trust in K-Electric is low due to past billing disputes. New owners must address that.
Economists predict job creation and better services in Karachi. Yet, some worry about foreign control over essential utilities.
The deal ties into broader trends. Pakistan’s power sector needs reforms to cut circular debt, now over 2.5 trillion rupees. Foreign players like Saudis could help.
What Lies Ahead for K-Electric
Looking forward, Prince Mansour plans to invest in modern tech and expand capacity. This might include solar projects and smarter grids.
Experts say the change could stabilize supplies for Karachi’s 20 million residents. It also ends uncertainties that hurt the company’s stock.
Government backing via SIFC shows a commitment to easing business. Similar deals might follow in other sectors.
Still, success depends on smooth handover and regulatory nods. Watch for updates as the transition unfolds.
This resolution offers practical lessons for investors eyeing Pakistan. It proves persistence and government support can overcome hurdles. Share your thoughts on this deal in the comments below, and spread the word if you found this insightful.
