ISLAMABAD – The proposed deal with regard to the sale of K-Electric hasbeen recognised as the highest-value private transaction in the history ofPakistan’s economy and will set a positive precedent, as it representsa major investment in Pakistan by an international power giant withoutstanding technical capabilities and major investment plans.
This was stated by K-Electric Chief Executive Officer (CEO) Moonis Alvi inan interviewlinkwitha private news outlet.
He said the federal government has prioritised the matter of K-Electric’ssale and has shown a keen interest in its progress because “it is mindfulof the fact that Pakistan cannot afford to lose such an excitingopportunity”.
There have been several meetings of K-Electric officials with keyrepresentatives of various government ministries to discuss progress.”
On a query, Alvi said, “Once completed, this transaction will strengthenPakistan’s potential as a welcome investment destination.”
Independent economists and experts have also said at various forums thatthe proposed acquisition of K-Electric is a positive development, given thecurrent geo-political situation and related economic pressures on Pakistan.
They agree that Shanghai Electric Power’s acquisition of the K-Electric andthe reported $9 billion investment plan would be highly beneficial for notjust Pakistan’s power sector but also for Karachi’s development and willhave a direct impact on national GDP.
According to Alvi, Pakistan’s economy is precariously placed, to say theleast, and the government is juggling a balance of payments crisis on onehand while on the other it has been running from pillar to post to raiseinvestment for key infrastructure projects and keep the country running.
“In such a scenario, Shanghai Electric Power’s interest in acquiring a66.4pc stake in KE and to invest $9 billion in the next years is a positiveomen and could be the forerunner to multiple windfall benefits in the yearsto come and serve as a springboard to other investors,” he remarked.
Shanghai Electric Power is a subsidiary of the State Power InvestmentCorporation (SPIC), one of China’s largest power enterprises. SEP currentlyprovides 30,000 megawatts electricity to Shanghai, China’s economic hub andhas proven its technical capabilities within power sector investments inother parts of the world. SEP is also amongst the few companies, which havebeen issued a license to build nuclear power plants in China and itsaffiliate companies are already working on critical projects in Pakistan.
“The government has expressed confidence in the proposed deal based on thetransformational impact it is expected to have on Karachi as well asPakistan’s overall power sector,” Alvi said.