Hafiz Naeem criticises subsidies for K-Electric despite heavy profits

Jamaat-e-Islami (JI) Karachi Emir Hafiz Naeemur Rehman on Friday expressed concern over relaxations provided by the federal government to the K-Electric (KE) in terms of hefty subsidiaries despite the fact that the private company had posted a net profit of more than Rs9 billion in only the last nine months.

The JI Karachi chief was commenting over a news item that mentioned the KE’s net profit for the nine-month period ending March 31, 2021, to be Rs9.443 billion. The annual subsidy was tantamount to sheer injustice towards the people affected by the KE and placing the national exchequer under great pressure without any logic, he said.

He was of the view that the National Electric Power Regulatory Authority’s (Nepra) decision to maintain the monopoly of the company by 2023 was in contradiction to the aspirations of the people of Karachi and court orders and it showed a naked biasness and nefarious nexus between the federal government, Nepra and KE.

The JI leader said former Federal Investigation Agency (FIA) director general Bashir Memon’s revelations about the connection between the KE administration and Prime Minister Imran Khan affirmed the JI’s viewpoint over the government’s undue favours to the private company. He quoted Memon as saying that the prime minister had remarked that Memon caused losses to the company in connection with Rs87 billion owed by the KE to the Sui Southern Gas Company (SSGC).

Rehman said the premier sheltered the KE to honour his friendship with the head of the Abraj Group — the parent company of the KE.

The JI city chief said that the power utility was liable to pay an amount of Rs300 billion to various public companies and people. He added that of the total amount, the company had to pay Rs55 billion to its consumers under the head of claw back and Rs87 billion to the SSGC. Instead of forcing the KE to pay the liabilities, the PM and his comrades were trying to shelter the private company, Rehman said.

He added that the people of Karachi were still suffering from load-shedding and overbilling by the power utility. The company had failed to increase its capacity and develop its infrastructure, he stated.

The JI leader demanded of the government to order a forensic audit of the private company for the last 16 years so as to place the wrongdoings on the part of the KE on record.