Pakistan’s Energy Minister has publicly criticized recent regulatory decisions on K-Electric’s licenses, warning of long-term risks to investment and subsidy frameworks—yet sources say the government may quietly reverse its stance amid pressure from influential quarters and concerns over Saudi-linked investment in the utility.
In a post on X (formerly Twitter), Energy Minister Owais Ahmad Khan Leghari said NEPRA’s rulings on K-Electric’s generation, transmission, and distribution licenses pose “serious concerns” for future investment plans and the country’s uniform tariff policy. The decisions, he added, could disrupt the financial structure of subsidies and tariff equalization.
Despite the criticism, senior officials within the Power Division say the decision—finalized after a two-year delay—has backing from powerful stakeholders, including those aligned with foreign investors. “The tweets didn’t sit well with them. A review is unlikely to alter the outcome, and the government might quietly walk back its objections,” one top official said, referring to Saudi Arabia’s interest in K-Electric.
The minister noted that the government is reviewing the latest determination, while a long-overdue decision on KE’s generation tariff—pending since December 2024—continues to strain the power sector’s financials.
A K-Electric senior executive, reacting to the developments, said the NEPRA ruling came after nearly two years of deliberations and should be honored. “Investors and partners are closely watching. Regulatory certainty is essential for future capital inflows,” he said.