Arab-based group takes management of Pakistani electricity company

Zawya – Arab-based group takes management of Pakistani electricity company

The Dubai-based AbraajAbraajLoading… group of companiees Tuesday took over management of the Karachi Electric Supply Company (KESC) from the Saudi Aljomaih group following finalization of a deal through which the Saudi company offloaded 50 per cent of its 73 per cent shares and management in the utility.

The company has pledged to dole out 400 million dollars to the government, which to some extent relieved pressure on its budget-makers.

The company is taking charge of KESC at a time when it has suffered huge losses, borne out by the financial statement of the company for 2007-08. During the period transmission and distribution losses were 30.80 per cent.

The KESC, after its two and half year of its privatization, has only shown decline in its performance, and practically driven a direction where it was feared to be sliding rapidly in the black hole.

Presently there is not a single asset of KESC which has not been mortgaged. Even large Industrial customer’s accounts are mortgaged to the generating company to whom the payments of such customers are directly being debited. The KESC is suffering a shortage of 350 MW which had forced the utility to persist with outages which in many areas of Karachi are extended up to nine hours at a stretch.

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