In the financial year 2023, K-Electric (KE), a major power company in Karachi, faced significant challenges. Factors such as high inflation, increased policy rates, and economic contraction led to a substantial loss of nearly Rs31 billion. During their annual general meeting, CEO Moonis Alvi chaired discussions about these financial troubles.
The company experienced a 7.3% reduction in electricity units provided and a massive decrease in gross profitability by Rs15.72 billion. Exchange losses rose by Rs4.38 billion due to the devaluation of the Pakistani rupee, and there was a further increase of Rs6.28 billion in impairment losses linked to unpaid debts, influenced by economic hardships.
Increased finance costs of Rs19.45 billion, largely due to higher borrowing rates, led to an after-tax loss of Rs30.90 billion. Despite these financial struggles, KE is pressing forward with an infrastructure upgrade. The construction of the 500-kilovolt Kannup-Karachi Interconnection Grid is progressing swiftly, along with the 220kV Dhabeji Grid.
Furthermore, KE commissioned two units of its 900-megawatt RLNG-fired power plant, BQPS-III. The company plans to invest Rs484 billion over the next control period, with a focus on infrastructure upgrades and a more reliable power supply for Karachi. They also aim to increase their renewable energy share to 30% by 2030 through their Power Acquisition Programme.