KE ownership: Top SIFC body forms panel to resolve issues

LONDON: The Executive Committee of Special Investment Facilitation Council (SIFC) set up on the instructions of Army Chief General Asim Munir has appointed a three-member committee to resolve the issues related to Karachi Electric (KE) after the original stakeholders from Saudi Arabia and Kuwait raised serious concerns.

The powerful committee composed of Minister for Energy (chair), Minister for Privatisation, and Minister for Law & Justice, was formed, according to sources, after the Saudi and Kuwaiti investors raised concerns at the highest level in Pakistan and requested for intervention in the wake of claims made by Infrastructure and Growth Capital Fund (IGCF) about the ownership of KE.

Those with inside knowledge of the development said the decision to form three-member committee was taken to assuage the Saudi and Kuwaiti concerns and the same message was sent to everyone involved in the dispute and claims.

The sources shared that it was intervention from the highest level that in the first week of September this year that the law ministry passed directives to the Privatization Division to maintain close vigilance on KES Power Ltd (KESP) and K-Electric’s case pending in the Sindh High Court owing to the strategic importance of the matter.

The ministry had advised the legal counsel of Privatization Division to seek the continuance of the stay with respect to changes to KE board of directors in the proceeding currently underway in Sindh High Court between KE’s shareholder over the legitimacy of the sale of shares to Sage Ventures Limited by the liquidators of Abraaj Investment Management Ltd. (AIML) who controlled Infrastructure and Growth Capital Fund (IGCF).

In October 2022, the Sindh High Court issued an interim order preventing any changes to the composition of KE’s Board of Directors without consent from principal shareholders of KES Power namely Al-Jomaih and NIG Holdings of Saudi Arabia and Kuwait respectively.

Shaheryar Arshad Chishty, Chief Executive Officer AsiaPak Investments Limited, confirms the same in a letter addressed to Mr Muhammad Ali, Federal Minister for Energy, Power & Petroleum. The letter, available with this publication, says: “I welcome the formation of a three- member committee by the SIFC and appeal to your good offices to help resolve Al-Jomaih’s concerns so that we can all focus on putting KE on the path to recovery. I am the nominated Director representing IGCF in relation to these discussions and would request the SIFC committee to invite the principal decision maker on the Al-Jomaih side for a meeting to resolve these issues in a fair and amicable manner.”