Saudi investors sign landmark MoU to acquire majority stake in K-Electric

In a major breakthrough for Pakistan’s power sector, Saudi investor Prince Mansour bin Saud on Thursday signed a historic memorandum of understanding (MoU) to acquire a majority stake in K-Electric, paving the way to end years of ownership disputes that had stalled foreign investment in the country’s largest power utility.

The signing ceremony took place at the Chief Minister House in Karachi, attended by top Saudi and Pakistani officials. The agreement represents Saudi Arabia’s investment in Pakistan’s energy sector and is expected to unlock new opportunities for power generation, supply, and distribution in Karachi.

Officials said the deal will finally resolve the long-standing tussle over K-Electric’s ownership that discouraged investors, including those from Shanghai Electric, from entering Pakistan’s power market. With this MoU, fresh Saudi capital is expected to flow into Karachi’s energy infrastructure, bringing stability and growth to the city’s electricity supply chain.

According to a statement from the Sindh Chief Minister’s Office, a 30-member delegation of the Pakistan-Saudi Business Council arrived in Karachi and was received by Chief Minister Murad Ali Shah. The visiting delegation was briefed on investment opportunities in Sindh, while both sides agreed to form joint working groups to promote collaboration in priority sectors.

Murad Ali Shah highlighted that Sindh is Pakistan’s first province to adopt the public-private partnership (PPP) model and invited Saudi investors to explore projects across multiple sectors.

Prince Mansour bin Saud said Saudi Arabia sees “significant potential in Pakistan’s privatization process” and aims to strengthen long-term economic cooperation.

Two key MoUs were signed during the event — the first concerning the purchase and sale of shares in K-Electric’s holding company, AsiaPak Power Limited, and the second between K-Electric Limited and Trident Energy Limited to explore strategic cooperation and investment opportunities in Pakistan’s energy sector.

Officials described the agreements as a vote of confidence in Pakistan’s energy market, reflecting growing international investor interest and a shared commitment to improving the country’s power generation, transmission, and distribution infrastructure.