Saudi and Kuwaiti investors initiated a $2 billion arbitration case against Pakistan concerning a dispute over K-Electric, as reported on January 21, 2026. The investors are seeking resolution through international arbitration.
Background: Privatization of K-Electric
K-Electric, previously known as Karachi Electric Supply Corporation (KESC), underwent privatization in 2005. Aljomaih Power Limited, a Saudi Arabia-based company, along with Kuwait’s National Industries Group, acquired the entity. The privatization aimed to address persistent inefficiencies and financial losses that plagued the company under state control. This historical context is crucial for understanding the current ownership structure and the roots of the ongoing dispute.
Sale to Shanghai Electric Power and Previous Disputes
The planned sale of K-Electric to Shanghai Electric Power faced significant delays and controversies. Disagreements over the sale price and regulatory obstacles contributed to the holdup. These prolonged delays raised concerns among the existing shareholders, potentially fueling their decision to pursue arbitration. The arbitration reflects the culmination of these long-standing issues regarding the ownership and future of K-Electric.
