Pakistan has resolved three of five operational issues for KE stake sale — Al-Jomaih official

An undated file photo of a Karachi Electric power station in Karachi, Pakistan. (Photo courtesy: K-Electric/Facebook)
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Updated 26 February 2024
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Pakistan has resolved three of five operational issues for KE stake sale — Al-Jomaih official

  • Al-Jomaih bought 66.4 percent share in KE in 2005 along with Abraaj Group and Kuwait’s National Industries Group
  • In 2016, consortium decided to sell stake to Shanghai Electric but sale stuck due to regulatory and other issues

KARACHI: The top official of a consortium that owns majority shares of Karachi Electric said on Monday Saudi investors were satisfied with the outcome of a committee formed by the Pakistani government to resolve regulatory hurdles and issues of payables that have been blocking the sale of the Pakistani utility to Chinese powerhouse Shanghai Electric Power (SEP) for years.

Al-Jomaih Holding Group, one of the largest business groups in Saudi Arabia, bought a 66.4 percent share in KE in 2005 as part of a consortium comprising Al-Jomaih, Abraaj Group and Kuwait’s National Industries Group (NIG). In 2016, the consortium decided to sell the stake to China’s Shanghai Electric Power and submitted an application for a National Security Certificate (NSC) to the Pakistani Privatization Commission. However, the group still awaits approval of the deal due to long-standing issues of regulatory approvals and KE’s liquidity constraints as a consequence of mounting circular debt plaguing the country’s power sector.

In January this year, Shanghai Electric reiterated its commitment to the deal. The government of Pakistan currently owns a 24.4 percent stake in K-Electric, which powers the country’s largest city and commercial hub of Karachi.

Shan Abbas Ashary, the Chief Investment Officer (CIO) of Al-Jomaih and a director at KE, said regulatory hurdles and disputes were being addressed at a “high pace” after the Saudi investment minister wrote a letter to the finance minister of Pakistan in December last year.

“After that, we had several meetings and the SIFC [Special Investment Facilitation Council] took up the matter and created a committee of three ministers,” Ashary told Arab News, referring to a civil-military body set up last year to fast-track foreign investments.

“Thanks to the Pakistani government, and thanks to the support from the Saudi government, this interim [Pakistani] government took it [KE’s issues] very seriously,” he said, adding that out of five key issues, three operational issues had been resolved while a committee had been formed to look into the remaining issues and progress was taking place.

“The outcome is satisfactory for us and I have reported it back to Al-Jomaih Group and they understand it and they appreciate it very much that progress is being made by the Pakistan government.”

He said he hoped the issues would be resolved in “several months not several years” due to the seriousness being accorded to the matter by the SIFC, whose committee comprised the ministers of law, energy and privatization.

When asked if Shanghai Electric, which had offered to purchase shares of KE for $1.7 billion six years ago, would revaluate its offer, the Al Jomaih official said:

“Shanghai Electric has just renewed expression of interest …. They will come back, do a complete due diligence because six years have passed, it’s a long time.”


After ICUBE-Q, Pakistan to launch modern communication satellite into space on May 30

Updated 9 sec ago
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After ICUBE-Q, Pakistan to launch modern communication satellite into space on May 30

  • The satellite will help usher in digital era in Pakistan by providing Internet to country’s remote areas, the national space agency says
  • The satellite launch from Xichang Satellite Launch Center (XSLC) will be broadcast live from agency centers in Islamabad, Karachi

ISLAMABAD: Pakistan will be launching its latest modern communication satellite, PAKSAT MM1, into the space on May 30, Pakistani state media reported on Tuesday, weeks after it launched ICUBE-Qamar (ICUBE-Q) into the lunar orbit.

Pakistani satellite ICUBE-Q was launched on May 3 aboard China’s Chang’e-6 lunar mission from Hainan, China. A major milestone in Pakistan’s space exploration efforts, the satellite successfully entered the moon’s orbit on May 8, and shortly after began transmitting the first images from lunar orbit.

The Pakistan Space and Upper Atmosphere Research Commission (Suparco), Pakistan’s national space agency, now plans to launch the communication satellite with Chinese assistance on May 30.

“The satellite PAKSAT MM1 would be launched from Xichang Satellite Launch Center (XSLC), China,” the Radio Pakistan broadcaster reported.

“The SUPARCO MM1 Satellite is a result of the tireless efforts of Pakistani scientists and engineers and it is conceived keeping in sight the growing needs of the country in the broad spectrum of communication and connectivity.’

The satellite would help usher in a digital era in Pakistan by helping provide Internet to remote areas, the report read, citing Suparco officials.

The launch ceremony would be broadcast live from Suparco’s offices in Islamabad and Karachi.

Established in 1961, Suparco manages Pakistan’s space program, enhancing the nation’s capabilities in satellite communications, remote sensing and meteorological science.


Pakistan confers civilian award on Islamic Development Bank chief for his eminent services

Updated 33 min 13 sec ago
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Pakistan confers civilian award on Islamic Development Bank chief for his eminent services

  • The IsDB is an international financial development institution that aims to foster socio-economic development in Muslim member countries
  • Pakistan is also among 56 members of the IsDB where the IsDB has invested in various projects and third largest beneficiary of its financing

ISLAMABAD: Pakistan’s Ambassador to Saudi Arabia Ahmad Farooq on Tuesday conferred the ‘Hilal-i-Quaid-i-Azam’ medal on Islamic Development Bank (IsDB) head Dr. Mohammed Sulaiman Al-Jasser in the Saudi city of Jeddah, the Pakistani consulate said. 

The Hilal-i-Quaid-i-Azam medal is one of Pakistan’s highest civil awards that is awarded to foreign nationals for their eminent services to Pakistan. 

The award ceremony was attended by representatives from Pakistan’s missions in the Kingdom and to the Organization of Islamic Cooperation (OIC).

“The President of Pakistan has conferred this medal on Dr. Al-Jasser for his instrumental role and for IsDB Group’s leadership in supporting Pakistan’s economic and development agenda and support at important world forums,” the Pakistani consulate in Jeddah said in a statement. 

The IsDB is a multilateral and international financial development institution that aims to foster socio-economic development in Muslim member countries. Pakistan is also among the 56 members of the IsDB where the IsDB has invested in various projects. 

In March, Pakistan and the IsDB signed a financing agreement worth $200 million for the Sindh Flood Emergency Housing Reconstruction Project. The project aims to construct 700,000 houses, benefiting an estimated 4.2 million people in rural areas of the southern province, and will support the creation of 75,000 water, sanitation, and hygiene facilities for over 1.3 million individuals.

The Bank announced a $100 million loan to support Pakistan’s polio eradication efforts in December 2023, on the sidelines of the COP28 United Nations climate summit in Dubai. 

After the devastating floods of 2022 killed 1,700 people and inflicted losses worth $30 billion on Pakistan, the IsDB pledged $4.2 billion for the South Asian country over the next three years.


Pakistani, Saudi investors to set up $5 million edible oil refinery in Kingdom — Pakistan trade official

Updated 28 May 2024
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Pakistani, Saudi investors to set up $5 million edible oil refinery in Kingdom — Pakistan trade official

  • Official says the joint venture is expected to be signed in next six months and it will allow export of 50 percent edible oil
  • Saudi authorities are offering land and other facilities to investors to encourage investment in the Kingdom, he adds

KARACHI: Pakistani and Saudi investors are establishing a $5 million edible oil refinery in Saudi Arabia through a joint venture (JV), a senior Pakistani trade official said on Tuesday, following recent business-to-business interactions between the two countries.

The development comes weeks after a 50-member, high-level delegation, led by the Kingdom’s Assistant Minister of Investment Ibrahim Al-Mubarak, arrived in Pakistan to explore investment opportunities in the South Asian country.

Pakistan and Saudi Arabia have been working closely in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.

“We are putting up an edible oil refinery in Saudi Arabia with the local partners. We have shared the feasibility with each other, and we will sign [an agreement] very soon,” Atif Ikram Sheikh, president of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), told Arab News on Tuesday. “There will be a joint venture.”

Ikram, who runs edible oil refineries and other businesses in Pakistan, informed that the project cost would be equally shared by investment partners, including himself.

“The project cost will be $5 million and we will share the cost together and this would be materialized within six months,” he said, adding the Saudi authorities were offering land and other facilities for the refinery. 

Saudi Arabia is currently consolidating its economy on modern lines under Vision 2030, a strategic development framework intended to cut the Kingdom’s reliance on oil. Under the framework, the Kingdom is also encouraging investment in diversified sectors to increase its export base.

“Their [Saudi authorities] condition is to maximize oil export up to 50 percent, while the rest you can sell in the local market,” Sheikh said.

The FPCCI chief said Saudi Arabia’s interest in Pakistan’s diversified sectors was “constantly increasing” and both sides had made tangible progress, including Saudi investment inflows in oil, agriculture and other sectors. 

In December last year, Aramco, one of the world’s leading integrated energy and chemicals companies, signed an agreement to acquire a 40 percent equity stake in Gas & Oil Pakistan that followed the signing of an agreement in November 2023 by Shell Pakistan (SPL) with Saudi Arabia’s Wafi Energy to sell its domestic operations after Shell Petroleum Company announced its exit from Pakistan with the sale of 77 percent shareholding in the local business.

Pakistani traders also expect further inflow of investment from the Gulf countries.

The FPCCI president said Pakistan’s Special Investment Facilitation Council (SIFC), a body consisting of Pakistani civilian and military leaders and specially tasked to promote foreign investment in Pakistan, is playing a crucial role in boosting investment in the South Asian country. 

The council, established in June last year, is focusing on investments in energy, agriculture, mining, information technology and aviation sectors, specifically targeting the Gulf nations.


Pakistan PM says ‘deeply concerned’ about Israeli strikes on Rafah, deplores violation of international law

Updated 28 May 2024
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Pakistan PM says ‘deeply concerned’ about Israeli strikes on Rafah, deplores violation of international law

  • Israeli tanks reached the center of Rafah for the first time on Tuesday, three weeks into an operation that has sparked global condemnation
  • Shehbaz Sharif says Pakistan strongly condemns Israel’s bombardment of Rafah, urges international community, particularly UN, to play role

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif said on Tuesday he was “deeply concerned” about Israeli strikes on the southern Gaza city of Rafah, deploring repeated violations of the international law by the Jewish state.

Israeli tanks reached the center of Rafah for the first time on Tuesday, witnesses said, three weeks into a ground operation in the southern Gaza city that has sparked global condemnation.

Overnight, Israeli forces pounded the city with airstrikes and tank fire, pressing their offensive despite an international outcry over an attack on Sunday that sparked a blaze in a tent camp, killing at least 45 Palestinians.

Sunday’s attack on the Rafah refugee camp came two days after the International Court of Justice (ICJ) ordered Israel to end its military offensive in Rafah, where more than half of Gaza’s population had sought shelter before Israel’s incursion earlier this month.

“Deeply concerned by the disturbing developments in Rafah. Pakistan strongly condemns Israel’s indiscriminate bombardment that has led to heavy casualties,” PM Sharif said on X.

“It is deplorable that international law is being repeatedly violated, despite ICJ’s recent clear verdict against Israel.”

The case against Israel was initiated by South Africa in December 2023, where it labeled Israel’s actions in the Gaza Strip as “genocidal,” asserting that they intended to destroy the Palestinian people in ways specified under the 1948 Genocide Convention.

Pakistan does not recognize the state of Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital.

In recent months, the South Asian country has repeatedly raised the issue of Israel’s war on Gaza, launched last October, at the United Nations through its permanent representative, Ambassador Munir Akram.

“The international community, particularly the UN, must play its part in protecting civilians from such brutal aggression,” PM Sharif said in his statement on X.

The war on Gaza broke out after Hamas attacks on Israel on October 7, which killed more than 1,100 people, in response to the deteriorating condition of Palestinian people living under Israeli occupation.

Israel launched a retaliatory offensive, widely viewed as disproportionate, in which more than 35,000 Palestinians, mostly women and children, have lost their lives, according to the Palestinian Health Ministry.


Pakistan PM calls for minimizing load shedding amid heatwave, urges steps against power theft

Updated 32 min 17 sec ago
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Pakistan PM calls for minimizing load shedding amid heatwave, urges steps against power theft

  • Power outages are not uncommon in Pakistan during the summer months when the demand on the national grid spikes sharply
  • Pakistan’s power sector has also been plagued by high rates of power theft and distribution losses, leading to huge debts

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday urged authorities to minimize load shedding in Pakistan amid an ongoing heatwave and to take steps against power theft in the country, his office said.

The directives were issued during a meeting Sharif presided over in Islamabad to review the supply of electricity, load management and measures against power theft in parts of the country.

Power outages are not uncommon in Pakistan during the summer months when the demand on the national grid spikes sharply due to the widespread use of air conditioners and desert coolers.

These seasonal surges often lead to prolonged power outages, which fuel public discontent, particularly during the intense heatwaves that have swept across Pakistan in recent years.

“The situation of [power] load management in extreme heat should be improved, keeping the convenience of the public in view,” Sharif was quoted as saying by his office.

“Provincial governments and law enforcement agencies should fully support the anti-electricity theft campaign.”

The South Asian nation’s power sector has been plagued by high rates of power theft and distribution losses, resulting in accumulating debts across the production chain — a concern also raised by the International Monetary Fund (IMF) during recent bailout talks.

The government of PM Sharif has recently launched a campaign to curb power theft in the country to avoid huge financial losses.

The prime minister said he would personally review progress on the drive against power theft, urging authorities to ensure that consumers were not charged excessive bills.

“The national interest and the development and prosperity of the country require that all the government institutions perform their responsibilities effectively against electricity theft,” he added.