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 is the only vertically integrated power utility in Pakistan, primarily engaged in the generation, transmission, and distribution of electric energy across Karachi and its adjoining areas. The Company has an installed generation capacity of 2,397 MW through its own assets and sourcing an additional 2283 MW from external producers – including up to 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). The Company operates under the legal framework established by the Electricity Act, 1910, the NEPRA Act, 1997, and associated NEPRA regulations governing power supply and procurement.

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 and remaining shares are publicly traded as free float. This diverse ownership structure fosters international confidence, enhances credibility, and supports long-term strategic alignment with both domestic and regional stakeholders.

K-Electric's Board underwent a comprehensive restructuring in early 2026, following an extended governance transition linked to shareholder-related legal proceedings initiated in October 2022. The impasse was resolved in January 2026, paving the way for a fully reconstituted Board. An Extraordinary General Meeting (EGM) was held on April 2, 2026, for the election of 13 directors, following the GoP's exercise of its shareholder right to nominate directors through the Ministry of Energy. The reconstituted Board, comprising a diverse mix of professionals with backgrounds in infrastructure investment, finance, energy, and corporate governance, subsequently appointed Shaheryar Arshad Chishty as Chairman on April 15, 2026. He is the founder of AsiaPak Investments and brings nearly two decades of investment banking experience across Hong Kong and regional markets. The Board is supported by four key committees, Audit, Finance, Human Resources & Remuneration, and Board Strategy & Projects, ensuring effective oversight and sound decision-making. On financial transparency, M/s. A.F. Ferguson & Co, serves as external auditor and has issued an unqualified opinion on financial statements through FY2023. Audited accounts beyond FY2023 remain pending, subject to the resolution of ongoing MYT-related regulatory matters; however, regulatory authorities have directed the Company to submit FY24 and FY25 financial statements by June 30, 2026.

KE's core business operations are organized across three segments, Generation, Transmission, and Distribution, each overseen by a well-structured hierarchy of qualified and experienced professionals. 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). Mr. Muhammad Aamir Ghaziani continues as Chief Financial Officer and Mr. Rizwan Pesnani serves as Company Secretary and Chief Risk Officer. 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. On the technology front, KE's strategic transition to SAP S/4 HANA is enhancing operational efficiency and data-driven decision-making, while the integration of a SCADA communication system across nine newly constructed grid stations supports real-time monitoring, improved system reliability, and optimized energy management.

In March 2026, Pakistan's power generation rose 6.3% YoY to 8,939 GWh, with 9MFY26 total generation reaching 93,131 GWh, reflecting a 3.3% YoY increase. The generation mix has shifted notably, with hydel and local coal surging while RLNG dropped significantly due to supply disruptions amid the US-Iran conflict. Within this landscape, KE operates as the country's only vertically integrated power utility, serving Karachi and surrounding areas — Pakistan's largest urban and industrial load center. KE's consumer mix is predominantly residential (84.6%), followed by commercial (14.7%), industrial (0.6%), and agricultural/public sector consumers, providing relative demand stability. The sector continues to witness gradual reforms aimed at improving market efficiency, competitive bilateral contracting, and open access framework development under government-led restructuring programs. KE's operating and financial profile remains closely linked to NEPRA's regulatory framework, with the MYT FY2024–FY2030 determination process introducing a degree of uncertainty through revisions to benchmark tariff assumptions, with certain aspects still pending before appellate forums. The delay in finalizing the MYT framework has also impacted completion of audited financial statements beyond FY2023, with regulatory authorities directing submission of FY2024 and FY2025 accounts by June 30, 2026. On revenues, the MYT framework was implemented in phases, with the average allowed tariff subsequently revised downward from approximately PKR 39.97/kWh to PKR 32.37/kWh, introducing additional regulatory considerations regarding the final revenue framework. Earnings sustainability remains closely linked to the tariff framework, with the revised scenario reflecting a tighter earnings environment relative to earlier estimates. The Company is engaged in ongoing discussions with relevant authorities to resolve these matters and finalize the applicable tariff structure. KE is also committed to embedding sustainability across its operations through active investments in renewable energy, grid modernization, and energy efficiency initiatives, alongside social responsibility programs focused on community development, safety, and education.

KE manages its working capital through a combination of short-term borrowings and internally generated cash flows. The Company has finalized a Power Purchase Agreement (PPA) with the regulatory authority, enabling it to offset payables to the CPPA-G against Tariff Differential Claims (TDCs) receivable from the GoP, supporting a balanced net financial position. Despite the unresolved tariff situation, short-term debt servicing capacity has not been materially disrupted, with customer collections holding up through the Master Collection Account (MCA) mechanism, which ring-fences designated receivables for scheduled debt repayments. On the instrument side, payments are being progressively amortised with no payment defaults recorded to date. The revised tariff has, however, compressed the debt service coverage buffer, and the Company's ability to sustain this performance will remain under observation as tariff-related matters progress through regulatory and appellate processes. Repayment of long-term borrowings is routed through designated MCAs, strategically earmarking collections for timely debt servicing, with the extent of future leveraging and capital deployment remaining dependent on the finalization of the MYT framework and related regulatory matters.

KE issued a Retail Sukuk of PKR 3,000 million, which included a green shoe option of PKR 1,000 million. The issuance took place in two phases. The first phase, the Pre-IPO placement, was successfully concluded in April 2025, with KE raising PKR 1,000 million. The second phase, the IPO stage, with a target issuance of PKR 2,000 million, received an overwhelming response from investors, attracting total subscriptions amounting to PKR 4,424 million, reflecting an oversubscription of approximately 2.2 times the offered amount and underscoring strong market confidence in the issue. In addition to the standard profit payment method via bank transfers, this sukuk has a unique feature where investors have the option to receive their profit payments as adjustments to their monthly KE electricity bills, given that they are KE consumers. The profit rate is set at a spread of 20 basis points over the 3-month KIBOR. The instrument has a tenor of one year, with principal repayment at maturity. Since issuance, profit payments have been made regularly and on a timely basis, with the remaining scheduled payments to continue through to maturity in September 2026.

The sukuk is unsecured, and in hierarchy of creditors, the investors shall rank after the secured lenders/investors of the Company.

The instrument is unsecured.