Karachi: Executive Committee of Special Investment Facilitation Council (SIFC) set up on instructions of Army Chief General Asim Munir has appointed three-member committee to resolve issues related to Karachi Electric (KE) after original stakeholders from Saudi Arabia and Kuwait raised serious concerns.

 Powerful committee composed of Minister for Energy (chair), Minister for Privatisation, and Minister for Law and Justice was formed, according to sources, after Saudi and Kuwaiti investors raised concerns at highest level in Pakistan and requested for intervention in wake of claims made by Infrastructure and Growth Capital Fund (IGCF) about ownership of KE.

Those with inside knowledge of development said decision to form three-member committee was taken to assuage Saudi and Kuwaiti concerns and same message was sent to everyone involved in dispute and claims. Sources shared that it was intervention from highest level that in first week of September this year that Law Ministry passed directives to Privatisation Division to maintain close vigilance on KES Power Ltd (KESP) and K-Electric’s case pending in Sindh High Court owing to strategic importance of matter.

  In October 2022, Sindh High Court issued an interim order preventing any changes to composition of KE’s Board of Directors without consent from principal shareholders of KES Power namely Al-Jomaih and NIG Holdings of Saudi Arabia and Kuwait respectively. Shaheryar Arshad Chishty, Chief Executive Officer AsiaPak Investments Limited, confirms same in letter addressed to Muhammad Ali, Minister for Energy, Power and Petroleum. “I am nominated Director representing IGCF in relation to these discussions and would request SIFC committee to invite principal decision maker on Al-Jomaih side for meeting to resolve these issues in fair and amicable manner.”

KE sources said that original stakeholders advocate sharp contrast to two well established groups from Saudi Arabia and Kuwait, getting into partnership with an individual who completely bypassed National Security Clearance process, has only 5 percent effective economic stake in KE, has been defaulter for IFC and World Bank, and is facing multiple law suits not only from third parties in other cases but also from EY and parties within KESP structure.

Original stakeholders contend that assertion of majority ownership in KE lacks foundation. Acquiring General Partner of IGCF only entails management rights, devoid of economic stake in KE. IGCF Fund’s share in IGCF SPV 21 consists solely of non-voting shares.

Published in The Daily National Courier, October, 25 2023

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