KARACHI: K-Electric Limited, the sole vertically integrated power utility in Pakistan, is launching its first Retail Listed Short-Term Utility Sukuk to address short-term liquidity challenges while reinforcing its commitment to Karachi's energy needs.

K-Electric, which plays a crucial role in powering Karachi, has announced the issuance of this Sukuk as a strategic step to manage financial timing mismatches. This initiative comes as K-Electric continues its transformation towards renewable energy solutions, having secured competitive tariffs for projects like the 100 MW Bela and 50 MW Winder.

The Sukuk, set to mature in one year, offers investors a unique option to receive profit payments as adjustments to their monthly KE utility bills, on top of standard bank transfers. This option targets KE consumers as the primary market, providing them preferential treatment in the Sukuk allocation.

K-Electric's regulatory journey continues with separate tariff petitions submitted for its Generation, Transmission, Distribution Network, and Supply operations. While the Generation tariff and investment plan received approval last year, the remaining petitions await NEPRA’s decision, delaying the company's financial statement finalization for FY23.

The utility has informed NEPRA, SECP, and PSX about the delays, actively working to expedite approvals. The completion of the Multi-Year Tariff (MYT) process is crucial for assessing K-Electric’s financial health and operational performance.

The Sukuk issuance underscores the company's focus on financial discipline amidst its ongoing efforts to enhance energy diversification and reduce import reliance, thereby inviting investor participation in Pakistan's evolving energy sector.