K-Electric Limited has signed agreements with the federal government for 10 years. These agreements will help the company to secure a firm electricity supply to Karachi. The agreements include a Power Purchase Agency Agreement and a Tariff Differential Subsidy Agreement. The company will also be able to off-take supply from the national grid and receive subsidies from the government. A Mediation Agreement has also been executed to settle disputes around historic payments. The CEO of K-Electric, Moonis Alvi, has described the agreements as a landmark day for Karachi, as they will provide uninterrupted electricity to the city. The agreements will also improve the company’s relationship with the government and allow it to implement its investment plan. Currently, there is a subsidy dispute between the power utility company and the Government of Pakistan, with approximately Rs4,007 billion receivable from K-Electric as of October 31, 2023.
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