Islamabad: Lucky Electric Power Company Limited (LEPCL) faces a delayed coal supply from a key domestic source, pushing back the start date from December 2025 to June 2026. The Sindh Engro Coal Mining Company (SECMC) will now begin supplying coal from its Block-II (Phase III) in June 2026, impacting LEPCL's fuel plans. The 660MW coal-fired power facility, operational since March 2022, currently relies on imported coal and has secured agreements with international suppliers.

The power producer is also addressing financial challenges stemming from currency devaluation, supply disruptions, and tariff changes. LEPCL seeks to refinance existing short-term debt instruments maturing on August 18, 2025, with a new issuance of PKR 6 billion (PPSTS-22). The company's total borrowings reached PKR 131.9 billion in the nine months ending March 2025, including PKR 25.4 billion in short-term loans. This represents a decrease in short-term debt from PKR 25 billion in June 2024 to PKR 6 billion in March 2025.

Despite these hurdles, LEPCL reported strong financial performance, generating revenue of approximately PKR 53.4 billion and a profit of about PKR 15.7 billion during the same nine-month period. The company benefits from an offtake agreement with CPPA-G, ensuring capacity payments regardless of electricity purchase orders. A government guarantee further backs payments from CPPA-G. The Pakistan Credit Rating Agency (PACRA) has assigned a preliminary rating to the new debt issuance. The backing of parent company Lucky Cement, a major player in the energy sector, is viewed favorably for LEPCL's creditworthiness. The company aims to maintain consistent operations at its power generation facility while navigating these current challenges. A new operations and maintenance contractor, Harbin Electric International Co., Ltd. of China (HEI), took over plant management in March 2023.