K-Electric Limited (KE or the Company), originally incorporated as Karachi Electric Supply Company Limited (KESC) in 1913 is a publicly listed entity with its shares traded on the Pakistan Stock Exchange (PSX).

KE has an installed generation capacity of 2,397 MW through its own assets and sourcing an additional 2283 MW from external producers – including 2000 MW from the National Grid. Its transmission network operates across 500kV, 220kV, 132kV, and 66kV voltage levels, supported by 78 grid stations and 184 power transformers, and is integrated with the national grid through interconnection with the National Transmission and Despatch Company (NTDC).

KE is the only vertically integrated power utility in Pakistan, primarily engaged in the generation, transmission, and distribution of electric energy. The Company operates under the legal framework established by the Electricity Act, 1910, and the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (Act XL of 1997), commonly referred to as the NEPRA Act. Its operations are further governed by the NEPRA (Electric Power Supplier) Regulations, 2022, and the NEPRA (Electric Power Procurement) Regulations, 2022, which collectively define the regulatory landscape for power supply and procurement in the country.

KES Power Limited, a company incorporated in the Cayman Islands, is the principal shareholder of KE, holding a 66.40% ownership stake. The Government of Pakistan (GoP) retains a 24.36% shareholding in KE, making it the second-largest stakeholder in the Company. The remaining shares are publicly traded as free float.

The involvement of the GoP as a significant shareholder contributes positively to the overall stability of the Company. The ownership structure fosters international confidence, enhances credibility, and supports long-term strategic alignment with both domestic and regional stakeholders.

K-Electric benefits from the business acumen of its key shareholders, whose extensive experience across diverse industries and large-scale investments enhances the company's strategic decision-making and fosters long-term sustainable growth.

The financial strength of KE's key stakeholders is built on their successful and diversified businesses This commercial strength, alongside the sovereign stake held by the GoP, plays a crucial role in enhancing the Company's financial stability, strategic resilience, and fostering investor confidence.

K-Electric's Board of Directors was re-constituted as a result of election of directors conducted in April 2025 which was made possible after the freeze on Board changes was removed by the Court and SECP in view of positive headway in shareholder-related legal proceedings initiated in 2022 and 2023. The litigations were initiated soon after the resignation of three KESP-nominated directors in October 2022 to make way for some new directors on KE’s Board, which resulted in the Court and SECP-directed restrictions on changes to the Board composition and led to an extended interim governance arrangement at the utility with shorter headcount on the Board. The impasse was resolved in January 2026, paving way for a fully reconstituted Board. An Extraordinary General Meeting (EGM) was held on April 2, 2026, for the election of 10 out of 13 directors, following the Government of Pakistan's decision of exercising its right of appointing directors on KE’s Board by way of nomination. Following the EGM held on April 2, 2026, the reconstituted Board comprises 13 directors excluding the Chief Executive Officer. The elected directors are: Shaheryar Arshad Chishty (Chairman), Adeeb Ahmed, Faisal Ahmed Siddiqui, Fahad Sultan Ahmed (Independent Director), Muhammad Kamran Kamal, Mujahid Pervaz, Mubasher H. Sheikh, Mustafa Nasir Farooki, Sameer Chishty, and Shan E. Abbas Ashary. The Government of Pakistan nominated three directors under its shareholder right: Secretary, Ministry of Energy (Power Division); Secretary, Ministry of Finance; and Ali Raza Bhutta. The newly constituted Board, in its first meeting on April 15, 2026, formally appointed Shaheryar Chishty as Chairman, replacing Mark Gerard Skelton. Syed Muhammad Taha also joined KE on April 15, 2026 and by virtue of his office is deemed as the 14th director. This marks the first complete reconstitution of the Board since the governance freeze imposed in 2022 and concludes a protracted legal and corporate dispute in different jurisdictions.

Shaheryar Arshad Chishty, appointed Chairman of KE with effect from April 15, 2026, is the founder of AsiaPak Investments, established in 2011, that has grown into one of Pakistan's leading infrastructure investment platforms. Prior to founding AsiaPak, he spent nearly two decades in investment banking in Hong Kong, holding senior leadership positions at Citigroup and Nomura Holdings, including roles as Head of Asia Industrials, Head of North Asia Mergers & Acquisitions, and subsequently as Asia Head and then Global Head of Industrials Investment Banking. The reconstituted Board comprises a mix of experienced professionals representing infrastructure investment, finance, energy, and corporate governance backgrounds. Alongside Mr. Chishty, the Board includes representatives associated with the principal shareholder group and independent professionals with experience across investment management, utilities, banking, and strategic oversight, supporting continuity in governance and long-term strategic direction for the utility.

Currently, the Board of KE is supported by three key committees to ensure the effective functioning of its operations: (i) Audit; (ii) Human Resources & Remuneration; and (iii) Board Strategy & Projects. These committees play a crucial role in streamlining the Board's processes and decision-making. The inclusion of directors nominated by the GoP, along with an independent director, adds significant depth and diverse perspectives to the Board's operations, strengthening overall governance and enhancing strategic oversight.

A.F. Ferguson & Company, Chartered Accountants, is the external auditor of the Company. The auditors have given unqualified opinion and review report on the Company's financial statements for the year ended June 30, 2023. Financial statements for periods beyond FY23 have not yet been finalized, as discussions and deliberations relating to the Multi-Year Tariff (MYT) and associated regulatory matters remain underway. However, as per a PSX notice issued by the Company, the relevant authorities have directed K-Electric Limited to transmit its annual financial statements for FY24 and FY25 by June 30, 2026, indicating that the pending matters are expected to be resolved in the near term.

KE's core business operations are organized into three main segments: Generation, Transmission, and Distribution. Each segment is overseen by a well-structured hierarchy, consisting of qualified and experienced professionals. This organizational framework ensures that the Company operates efficiently across its diverse business functions, with dedicated expertise managing the strategic, operational, and technical aspects of each segment.

The Company underwent a notable leadership transition in early 2026, with Syed Moonis Abdullah Alvi resigning as CEO in February 2026. Adeeb Ahmed served as interim CEO until the appointment of Syed Muhammad Taha as permanent CEO effective April 15, 2026. Mr. Taha brings over three decades of experience in the energy sector, having previously served as Managing Director and CEO of Pakistan State Oil (PSO) and held senior roles at Oasis Energy, Shell Pakistan, and Caltex Pakistan (Chevron). The Company's leadership is anchored in four core pillars, Thought Leadership, Knowledge-based Learning, Values, and Social Responsibility, reflecting a culture of integrity, accountability, and continuous improvement.

The Company operates with a strong foundation built upon four core pillars: (i) Thought Leadership, (ii) Knowledge-based Learning, (iii) Values, and (iv) Social Responsibility. These pillars guide the Company's operations and strategic direction. KE's leadership is deeply committed to upholding the principles of integrity, accountability, and continuous improvement, fostering a culture that encourages innovation and ethical practices. The Company strives to create a harmonious balance between economic growth and environmental sustainability, ensuring that its business activities contribute positively to society and the environment. This dedication to its CARES values – Customer Commitment, Accountability, Responsibility, Excellence, and Sustainability – propels KE's vision of becoming a growth-driven, sustainable organization with a long-term focus on delivering value to all stakeholders.

KE's strategic transition to SAP S/4 HANA, a next-generation enterprise resource planning (ERP) system will help to enhance operational efficiency, data accuracy, and process transparency across the organization. With customer centricity at the core of its operations, the Company is leveraging advanced technology solutions to streamline workflows, improve service delivery, and support data-driven decision-making.

The new system supports upcoming regulatory frameworks, such as 'Time of Use' (ToU) tariffs. In parallel, KE is advancing its grid modernization efforts by integrating a state-of-the-art Supervisory Control and Data Acquisition (SCADA) communication system at nine newly constructed grid stations. These grids are connected to the Load Dispatch Center, enabling real-time monitoring, enhanced system reliability, and improved demand-supply management. Additionally, these upgrades contribute to better environmental controls through optimized energy flow, reduced transmission losses, and improved resource efficiency.

On the policy and regulatory front, the sector is witnessing gradual reforms aimed at improving efficiency and market structure, including initiatives related to competitive bilateral contracting, open access framework development, and broader power sector restructuring under government-led reform programs. These measures are intended to enhance market efficiency, improve allocation of generation resources, and gradually transition toward a more competitive electricity trading environment. In this evolving context, both national grid dynamics and KE's operational performance remain closely linked to regulatory developments, demand-side shifts, and the pace of sector reforms.

K-Electric Limited holds a distinct position within Pakistan’s power sector as the country’s only vertically integrated electric utility, undertaking generation, transmission, distribution, and supply operations within its licensed service territory. With an operating history spanning more than a century, the Company remains the primary electricity provider for Karachi and its adjoining areas, serving a large and diversified consumer base. The Company’s operating and financial profile remain closely linked to the regulatory framework governed by National Electric Power Regulatory Authority (NEPRA). During the MYT FY2024–FY2030 determination process, revisions in the benchmark tariff assumptions and related regulatory deliberations introduced a degree of uncertainty regarding the final tariff structure and associated financial implications. Certain aspects of the MYT continue to remain under review and discussion between the relevant stakeholders and regulatory authorities, including proceedings before the relevant appellate forums. In parallel, the delay in finalization of the MYT framework has also impacted the completion of audited financial statements beyond FY2023, with regulatory authorities directing submission of FY2024 and FY2025 accounts by June 30, 2026.

K-Electric Limited had a registered consumer base of approximately 3.8 million, with the residential segment forming the largest share of its customer mix. The MYT framework for FY2024–FY2030 was implemented in phases by National Electric Power Regulatory Authority (NEPRA), with approval of the Generation segment in October 2024, followed by Transmission, Distribution, and Supply segments in May 2025. Subsequently, revisions to the approved tariff structure, including adjustments to the average allowed tariff level from approximately PKR 39.97/kWh to PKR 32.37/kWh, have introduced additional regulatory considerations regarding the final revenue framework for the control period. The matter remains under appeal, with the court directing a reconsideration over the three-month period and the MYT framework is yet to be fully finalized in all respects, and audited financial statements beyond FY2023 have not yet been completed, as final revenue determination remains contingent upon the resolution of these outstanding matters.

K-Electric Limited’s revenue is fundamentally dependent on the tariff framework and the revenue allowances established under the MYT control period. Under the original determined tariff, financial projections pointed to a gradual improvement in profitability through FY2030, supported by EBITDA recovery and adequate coverage of operating costs and debt service obligations. However, subsequent revisions to tariff assumptions have lowered the average allowed tariff relative to initial projections, resulting in moderated revenue and margin expectations across the control period. The revised outlook therefore reflects a more constrained earnings environment compared to earlier estimates based on the original assumptions. This contrast between scenarios highlights the significant influence of regulatory determinations, alongside operational performance, on the Company’s financial outcomes. KE continues to engage with the relevant authorities, with the ultimate financial trajectory contingent upon the resolution and finalization of the applicable tariff framework.

KE is committed to embedding sustainability at the core of its operations, aligning its business strategy with environmental, social, and governance principles. The Company is actively pursuing a cleaner energy future through investments in renewable energy projects, grid modernization, and energy efficiency initiatives. KE's efforts include reducing transmission and distribution losses, integrating environmentally friendly technologies, and promoting responsible resource management. Social responsibility remains a key pillar, with initiatives focused on community development, safety, education, and stakeholder engagement.

KE manages its working capital requirements through a balanced approach that includes a combination of short-term borrowings and internally generated cash flows. To further strengthen its liquidity position, KE has finalized a Power Purchase Agreement (PPA) with the regulatory authority. The formalization of this agreement enables KE to offset its payables to the CPPA-G against Tariff Differential Claims (TDCs) receivable from the GoP, ensuring a balanced net financial position.

Despite the challenges arising from the revised tariff, the consumer-end tariff remains unchanged. Consequently, KE’s collection levels remain stable, and inflows into the Master Collection Accounts (MCAs) continue unaffected. KE maintains sufficient liquidity to meet its debt obligations, with the account earmarked for lender repayments holding a cushion nearly four times greater than the actual payment requirement. Over the past two years, KE has consistently met its repayment obligations despite the absence of the MYT. The MCA, specifically designated for lender payments, provides ample coverage, ensuring timely repayments without cash flow constraints. The Company’s ability to sustain this performance will remain under observation as the tariff-related matters progress through the relevant regulatory and appellate processes.

The investment plan envisaged under the approved MYT framework was expected to support sizeable capital expenditure across the transmission and distribution network over the control period, which could have resulted in a further increase in leverage levels. These investments were primarily aimed at improving operational efficiency, reducing system losses, and strengthening network reliability. However, following subsequent revisions and ongoing discussions relating to the MYT and tariff assumptions, the pace, scale, and funding requirements of the planned investments may be reassessed. Accordingly, the extent of future leveraging and capital deployment remains dependent on the finalization of the MYT framework and related regulatory matters.