K-electric announces shutting down of two gas power plants

Karachi: The soul electricity provider to Karachi, K-electric has announced to shut down two of its gas power plants, ARY News reported.

The K-electric in this regard has written a letter to the Pakistan Stock Exchange (PSX) informing closure of its gas power plants owing to the gas crisis.

The power company in its letter apprised that gas turbine power station in Korangi town and gas turbine power station situated in SITE Karachi will be closed down.

The Board of Directors of the company approved the shutting down of the both the gas stations, the letter stated.

The K-electric will approach to the National Electric Power Regulatory Authority (NEPRA) as well for closing down of the gas power plant on permanent basis.

The experience of relying on the imported LNG on non availability of local gas remained unsuccessful, the letter apprises.

The closure of the both the power stations will not at all affect transmission of electricity, the K-electric apprised.

A 900 MW Bin Qasim power plant has been activated for meeting the electricity demand, the letter informed.

Moreover, an agreement was also signed for getting an additional 2000 MW electricity from the national grid, the letter stated.

Earlier in the day, K-Electric (KE), has announced its financial results for the fiscal year ending June 30, 2024, reporting a profit after tax of PKR 4.13 billion despite significant economic challenges.

The company’s board in its meeting held on September 23, 2025, approved the financial results. The board stated that the country’s economy experienced subdued growth in FY24, with GDP growth of 2.51 percent. High inflation and elevated policy rates continued to challenge the country’s power sector, placing operational pressure on KE.

A key concern highlighted in the report was a rise in AT&C losses, which increased by 1.8 percentage points, largely due to economic disruptions and reduced consumer payment willingness amid tariff hikes and inflation.

As a result, KE reported unconsolidated profit after tax of PKR 4.13 billion, which translates into 3.56 percent return on equity and 0.87 percent return on property, plant, and equipment (PPE).

Despite these difficulties, KE achieved operational milestones during the year, notably adding the 900 MW BQPS-III power plant to its fleet, boosting fleet gross efficiency to 49.5 percent (HHV). In August 2023, and managed to dispatch a maximum supply of 3,550 MW in FY24.

In addition, during FY24, transmission capacity was enhanced through the installation of new 40 MVA power transformers at Dhabeji-2, DHA-4, and Korangi East grids. With these additions and other enhancements, the transformation capacity of power transformers in the KE network reached 7,095 MVA by the end of FY 2024.

However, the company faced challenges on the distribution front, with recovery ratios falling to 91.5 percent in FY24 compared to 92.8 percent the previous year. KE intensified anti-theft efforts, removing over 350,000 kilograms of illegal electrical connections and conducting around 30,000 enforcement drives.

Looking ahead, KE remains committed to strengthening operational performance and pursuing long-term investments across the value chain to create value for its stakeholders.

During FY24, significant progress was made in line with the Government of Pakistan’s directives to increase drawl from the National Grid and absorb the surplus capacity available in the system.

Two major interconnection projects were successfully commissioned: the 500kV KKI (November 2024) and the 220kV Dhabeji-2 (March 2025) and post completion of works on K2/K3 to PQEPCL circuit by National Grid Company, KE’s drawl of power from the National grid was enhanced to around 2,000 MW from August 2025.

These interconnections represent a critical advancement in KE’s ability to access national energy resources, significantly increasing interconnection capacity and contributing to improved grid stability.

At the same time, KE’s network governance and anti-theft drives together with accelerated efforts to electrify additional areas through network extension and installation of 50,000 low-cost meters as well as year-round recovery camps will improve its performance.

KE also shows its commitment to collaboration of all its stakeholders for resolution of key matters and execution of the approved investment plan that is aimed at benefiting customers and Pakistan’s economy as a whole.

About K-Electric:

K-Electric (KE) is a public listed company incorporated in Pakistan in 1913 as KESC. Privatized in 2005, KE is the only vertically integrated power utility in Pakistan supplying electricity to Karachi and its adjoining areas.

The majority shares (66.4 percent) of the Company are owned by KES Power, a consortium of investors including Al-Jomaih Power Limited of Saudi Arabia, National Industries Group (Holding) of Kuwait, and KE Holdings (Formerly: Infrastructure and Growth Capital Fund or IGCF). The Government of Pakistan is also a shareholder (24.36 percent) in the Company while the remaining are listed as free float shares.