K-Electric not involved in shareholder arbitration

January 21, 2026 (MLN): K-Electric Limited (PSX: KEL) received an arbitration notice from its indirect shareholders to the Government of Pakistan through the Attorney General’s office. K-Electric is not a party to the arbitration, and no claims have been made against the company.

The aforementioned information was disseminated through a notification to Exchange.

K-Electric Limited is a Pakistan’s largest integrated power utility serving Karachi, is indirectly involved in an arbitration initiated by its long-term shareholders against the Government of Pakistan through the Attorney General’s office.

K-Electric is not a party to the arbitration, and no claims have been made against the company.

The shareholders, who have invested hundreds of millions of dollars in K-Electric over more than two decades, modernized what was previously a failing state-owned utility, reducing losses and expanding capacity.

Notably, they have reinvested all profits instead of taking dividends, relying on Pakistan’s laws, regulations, and international treaty commitments.

The arbitration seeks compensation of at least $2 billion, citing breaches by the State under the OIC Investment Agreement.

The claims include obstruction of a $1.77bn exit transaction for over eight years, withholding payments owed to K-Electric for up to twenty years, and interference with an independent tariff-setting process.

They also include failure to protect shareholder investments from unlawful diversion and misappropriation of funds, including $66m from a listed company, Cnergyico PK Limited.

Shareholders claim that repeated attempts to resolve disputes through domestic law remedies and State-agreed mediation were frustrated, leaving them with no option but to seek arbitration.

While the arbitration is between the shareholders and the Government of Pakistan, K-Electric’s operations remain unaffected.

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