KARACHI: A senior government functionary, who wrote a letter to the country’s privatization commission earlier this month to raise objections against the arbitration terms of reference (TORs) to resolve payment issues of K-Electric before its sale to Shanghai Electric Power (SEP), told Arab News he had acted in the interest of “protecting public money.”
Former K-Electric chairman Tabish Gauhar was appointed Special Assistant to the Prime Minister on Power last October.
Earlier this month, Abdulaziz Hamad Aljomaih, managing director investments at Saudi business group Aljomaih Holdings, was in Pakistan to complete a deal held up since 2016 and expedite the removal of impediments to conclude Shanghai Electric Power’s bid to acquire 66.4% controlling stakes in K-Electric Limited.
Dubai-based, now collapsed, private equity firm Abraaj Group and Aljomaih/National Industries Group (NIG) of Kuwait have a 66.4% stake in K-Electric, formerly known as Karachi Electric Supply Company (KESC), while the government of Pakistan holds 24.36% shares.
Soon after Aljomiah’s visit, Gauhar wrote a letter to the Privatization Commission, highlighting objections to the under-consideration arbitration terms of reference (TORs). The letter was widely viewed by the local press as an attempt to scuttle the SEP deal.
“My internal letter on the arbitration TORs is self-explanatory, and it was written to protect public money,” Gauhar told Arab News, denying any conflict of interest. “I have no current conflict of interest with KE since I left that organization in October 2015.”
Gauhar said it was his responsibility to address public interest issues as a member of the inter-ministerial committee set up by the government to resolve the K-Electric deal — already delayed due to pending payment issues related to payables and receivables among K-Electric, Sui Southern Gas Company, National Transmission and Dispatch Company, and the Ministry of Finance.
But analysts say the letter written by the prime minister’s adviser would not have much impact on K-Electric’s sale to the SEP.
“I don’t think this letter would make any major impact on progress made so far,” Samiullah Tariq, Director Research at the Pakistan Kuwait Investment, said. “For the sustainability of the power company and its future projects, the only way out is to resolve this issue.”
PM’s adviser defends opposition to terms of sale of K-Electric to Chinese company
https://arab.news/pygq7
PM’s adviser defends opposition to terms of sale of K-Electric to Chinese company
- Saudi business tycoon was in Pakistan earlier this month to complete a deal held up since 2016 for the sale of K-Electric to Shanghai Electric
- Soon after Aljomiah’s visit, Gauhar wrote a letter to Privatization Commission highlighting objections to under-consideration arbitration TORs
Pakistan terms climate change, demographic pressures as ‘pressing existential risks’
- Pakistan has suffered frequent climate change-induced disasters, including floods this year that killed over 1,000
- Pakistan finmin highlights stabilization measures at Doha Forum, discusses economic cooperation with Qatar
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Saturday described climate change and demographic pressures as “pressing existential risks” facing the country, calling for urgent climate financing.
The finance minister was speaking as a member of a high-level panel at the 23rd edition of the Doha Forum, which is being held from Dec. 6–7 in the Qatari capital. Aurangzeb was invited as a speaker on the discussion titled: ‘Global Trade Tensions: Economic Impact and Policy Responses in MENA.’
“He reaffirmed that while Pakistan remained vigilant in the face of geopolitical uncertainty, the more pressing existential risks were climate change and demographic pressures,” the Finance Division said.
Pakistan has suffered repeated climate disasters in recent years, most notably the 2022 super-floods that submerged one-third of the country, displaced millions and caused an estimated $30 billion in losses.
This year’s floods killed over 1,000 people and caused at least $2.9 billion in damages to agriculture and infrastructure. Scientists say Pakistan remains among the world’s most climate-vulnerable nations despite contributing less than 1 percent of global greenhouse-gas emissions.
Aurangzeb has previously said climate change and Pakistan’s fast-rising population are the only two factors that can hinder the South Asian country’s efforts to become a $3 trillion economy in the future.
The finance minister noted that this year’s floods in Pakistan had shaved at least 0.5 percent off GDP growth, calling for urgent climate financing and investment in resilient infrastructure.
When asked about Pakistan’s fiscal resilience and capability to absorb external shocks, Aurangzeb said Islamabad had rebuilt fiscal buffers. He pointed out that both the primary fiscal balance and current account had returned to surplus, supported significantly by strong remittance inflows of $18–20 billion annually from the Middle East and North Africa (MENA) and Gulf Cooperation Council (GCC) regions.
Separately, Aurangzeb met his Qatari counterpart Ali Bin Ahmed Al Kuwari to discuss bilateral cooperation.
“Both sides reaffirmed their commitment to strengthening economic ties, particularly by maximizing opportunities created through the newly concluded GCC–Pakistan Free Trade Agreement, expanding trade flows, and deepening energy cooperation, including long-term LNG collaboration,” the finance ministry said.
The two also discussed collaboration on digital infrastructure, skills development and regulatory reform. They agreed to establish structured mechanisms to continue joint work in trade diversification, technology, climate resilience, and investment facilitation, the finance ministry said.
