Kuwait-based EnerTech explores collaboration, investment in Pakistan’s K-Electric

A view of the K-Electric head office, with solar panels at the parking area, in Karachi, Pakistan, on January 24, 2023. (REUTERS/File)
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Updated 11 August 2023
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Kuwait-based EnerTech explores collaboration, investment in Pakistan’s K-Electric

  • Pakistan plans to increase share of clean energy in its energy mix to 60 percent by 2030 to cut reliance on imports
  • K-Electric says partnership with EnerTech would allow it to serve up to 30 percent of projected demand through renewables

ISLAMABAD: Kuwait-based energy firm EnerTech Holding is exploring collaboration and investment opportunities in Pakistan’s K-Electric power supply company to help accelerate the South Asian country’s transition toward renewable energy, a joint statement issued by the two companies said this week.

Pakistan’s energy imports during the last fiscal year (2022-23) were $17 billion, 30.7% of the country's total imports, according to the Pakistan Bureau of Statistics (PBS).

To cut reliance on imported fossil fuel and save foreign exchange, Pakistan has said it plans to increase the share of clean energy in its energy mix to 60 percent by 2030. Currently, the share of renewable energy is only about 4 percent.

“We’re very pleased to see K-Electric’s ambitions for Karachi and its alignment with the country’s renewable energy vision,” the CEO of EnerTech Holding, Abdallah Al-Mutairi, said during a meeting with K-Electric’s head Moonis Alvi on Thursday.

“We believe that a collaboration that combines EnerTech’s expertise and K-Electric’s legacy can have tremendous implications to accelerate these efforts.”

According to the joint statement, K-Electric anticipates that the company will be serving five million customers with a demand of 5,000 megawatts (MW) of electricity by 2030. Through investments and strategic partnerships with entities like EnerTech, the company said it intended to serve up to 30 percent of this projected demand through renewable energy. This would also reduce dependence on imported fuels for electricity production and thus benefit the national exchequer.

“We look forward to working with entities like EnerTech, which have an established global footprint and an investment portfolio coupled with a network of experts in the energy space who can help us learn the best global practices and tailor our plans to deliver energy efficiently and effectively to our customers,” the statement quoted Alvi as saying.

“We hope to work closely on opportunities that can accelerate Karachi and Pakistan toward a greener and more sustainable future.”

EnerTech Holding is a fully-owned subsidiary of the National Technology Enterprises Company (NTEC), which is a wholly-owned subsidiary of the world’s oldest sovereign fund, the Kuwait Investment Authority, with presence in 65 countries.


Pakistan’s capital picks concrete over trees, angering residents

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Pakistan’s capital picks concrete over trees, angering residents

  • Between 2001 and 2024, Islamabad lost 14 hectares of tree cover, according to Global Forest Watch 
  • Officials justify removing trees to tackle seasonal pollen allergies that are especially acute in spring

ISLAMABAD: Pakistan’s capital Islamabad was once known for its lush greenery, but the felling of trees across the city for infrastructure and military monuments has prompted local anger and even lawsuits.

Built in the 1960s, Islamabad was planned as a green city, with wide avenues, parks and tree-lined sectors.

Many residents fear that vision is steadily being eroded, with concrete replacing green spaces.

Muhammad Naveed took the authorities to court this year over “large-scale tree cutting” for infrastructure projects, accusing them of felling “many mature trees” and leaving land “barren.”

The World Wide Fund for Nature (WWF) blamed major infrastructure development, including road construction and monuments, for the mass razing of trees and natural vegetation in Islamabad.

Between 2001 and 2024, the capital lost 14 hectares of tree cover, equal to 20 football pitches, according to Global Forest Watch, though the figure does not account for tree cover gains during the same period.

For Kamran Abbasi, a local trader and resident since the 1980s, it feels like “they are cutting trees everywhere.”

“It is not the same anymore,” he told AFP.

“Trees are life. Thousands are cut to build one bridge.”

SMOG AND POLLEN

Meanwhile, air quality in Islamabad continues to deteriorate.

Pollution is a longstanding problem, but plants can help by filtering dirty air, absorbing harmful gases and cooling cities.

“Forests act as powerful natural filters... cleaning the air and water, and reducing the overall impact of pollution,” Muhammad Ibrahim, director of WWF-Pakistan’s forest program told AFP.

There were no good air quality days in Islamabad last month, with all but two classed as “unhealthy” or “very unhealthy” by monitoring organization IQAir.

While some trees are felled for infrastructure, officials justify removing others to tackle seasonal pollen allergies that are especially acute in spring.

That problem is largely attributed to paper mulberry trees, which were planted extensively during the city’s early development.

“The main reason is pollen allergy,” said Abdul Razzaq, an official from the Capital Development Authority (CDA) in Islamabad.

“People suffer from chest infections, asthma and severe allergic reactions. I do too,” he told AFP.

The government plans to remove 29,000 pollen-producing trees and plants, according to a recent WWF report.

However, critics argue that pollen allergies are an excuse to justify broader tree-cutting, particularly linked to military and infrastructure projects.

The solution lies not in indiscriminate tree removal, but careful urban planning, experts say, replanting with non-allergenic species — and greater transparency around development projects in the capital.

CAPITAL UNDER AXE

In recent months, large bulldozers have been spotted levelling former green belts and wooded areas, including near major highways.

According to WWF and unnamed government officials, some of the cleared land is tapped for monuments commemorating the brief but intense armed conflict between Pakistan and neighboring India last May.

Other plots were razed to make way for military-linked infrastructure.

“We know that trees are being cut for military-related projects, but there is not much we can do,” a government source told AFP, requesting anonymity for security reasons.

“The people in power, the military, can do whatever they want.”

Pakistan’s powerful military has ruled the country for decades through coups and is deeply involved in the country’s politics and economy, analysts say.

At a proposed military monument site along the city’s express highway, WWF recorded more than six hectares of land clearing last year, with work continuing in 2026.

It saw “no active plantation... indicating that the clearing is infrastructure driven.”

The military did not respond to AFP’s request for comment.

Naveed’s court case seeking to halt the widespread felling, which is still being heard, argues there is “no excuse” for the tree loss.

“If a monument is deemed essential, why was it not placed in any existing park or public place?” he argues.

In reply to Naveed’s petition, authorities said roads and infrastructure projects were approved under regulations dating back to 1992.