Saudi business tycoon in Pakistan, hopeful of sale of K-Electric to Chinese power giant 

A technician from the Karachi Electric Supply Corporation (KESC), Pakistan’s largest city’s power supply company, fixes new electricity meters at a residential building in Karachi on May 13, 2010. (AFP/File)
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Updated 18 March 2021
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Saudi business tycoon in Pakistan, hopeful of sale of K-Electric to Chinese power giant 

  • Aljomaih says completion of transaction held up since 2016 will open doors to billions of dollars in investment in Karachi’s energy infrastructure
  • Aljomaih in Pakistan to seek resolution of challenges, including long-standing issue of payables and receivables involving KE and government entities

Karachi: Abdulaziz Hamad Aljomaih, managing director investments at Saudi business group Aljomaih Holdings, is hopeful Pakistan would complete a deal held up since 2016 and expedite the removal of impediments to conclude Shanghai Electric Power’s (SEP) bid to acquire 66.4% controlling stakes in K-Electric Limited, the power utility said on Wednesday.
Dubai-based, now collapsed, private equity firm Abraaj Group and Aljomaih/National Industries Group (NIG) of Kuwait have a 66.4% stake in K-Electric, formerly known as Karachi Electric Supply Company (KESC), while the government of Pakistan holds 24.36% shares. 
Aljomaih is one of the largest investors in KE through the consortium that bought out KESC in 2005 and was the main driver of the privatization process of the company. He also served as the first chairman of KE’s board of directors and continues to serve on the board of KES Power, the controlling and shareholding company of KE. 
“Hamad Aljomaih was in Pakistan to seek resolution of challenges facing K-Electric, including the long-standing issue of payables and receivables involving KE and several government entities,” a statement issued by K-Electric said. “Aljomaih expressed pleasure that the government of Pakistan has assured that it will extend support in expediting the process of approvals so that held up Tariff Differential Claims (TDC) to the tune of around PKR 275 billion on principle basis, are released at the earliest.”
The power utility said the issues had put a strain on the sustainability of the company.
Aljomaih, who is on a two-day visit to Pakistan, held meetings with Prime Minister Imran Khan, President Dr. Arif Alvi and other key officials including finance minister Dr. Abdul Hafeez Shaikh, minister for privatization Mohammedmian Soomro, energy minister Omar Ayub Khan, and energy adviser Nadeem Babar, focusing on areas of mutual interest, such as the resolution of pending issues, as well as potential future collaborations. 

On the second day of his visit, Wednesday, Aljomaih met with key stakeholders in Sindh including Governor Sindh Imran Ismail, Provincial Minister for Energy Imtiaz Shaikh, Murtaza Wahab, adviser to the Sindh chief minister, among others. Matters regarding KE, which is one of Aljomaih Group’s largest investments outside of Saudi Arabia, also came up for discussion. 
During his meetings with the Pakistani leadership, Aljomaih welcomed Pakistan’s positive response for the resolution of the long-standing issue of payables and receivables with various government entities and the conclusion of the sale of Aljomaih’s stake to Shanghai Electric Power.
The talks also focused on KE’s continued commitment to Karachi, and its upcoming 900 MW power plant located at Bin Qasim. Aljomaih said the release of pending payments would enable the power utility to continue investing in Karachi’s power infrastructure, and also remove hindrances to the signing of fresh agreements critical to improving the city’s demand and supply situation. 
“K-Electric has been transformed into a utility that is attracting investors like Shanghai Electric, one of the major players in the global energy sector that has transformed the city of Shanghai from 3000MW to 30,000MW,” Aljomaih was quoted in the statement as saying.
“This would have not been possible ten or fifteen years ago. However, this is possible today when KE has been transformed into a top of the line integrated utility company of Pakistan. The transaction that has been lingering since 2016, when completed will open the doors to investment of billions of dollars into Karachi’s energy infrastructure,” he added.
The utility said since its privatization, the Group had invested more than $720 million as equity into the company, which had in turn allowed the company to invest more than $3.3 billion in Karachi’s power infrastructure. 
The Saudi businessman, who has significant interest in several industrial and financial sectors internationally, is also chairman of Arcapita Investments Bahrain, which has completed over 80 investments in the Middle East, Europe and the United States over the last 20 years with total transaction value exceeding $30 billion.
Established in 1936, Aljomaih Holding Company is a major industrial and commercial conglomerate with partnerships with some of the most prominent global companies including General Motors, Pepsi Cola, Shell, Yokohama, and many other American, European and Japanese international brands. 


Iranian FM arrives in Pakistan to discuss Middle East situation, bilateral ties

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Iranian FM arrives in Pakistan to discuss Middle East situation, bilateral ties

  • Seyed Abbas Araghchi’s visit takes place amid surging regional tensions between Israel and Iran
  • Islamabad, Tehran have had a rocky relationship despite agreements on trade, energy and security 

ISLAMABAD: Iran’s Foreign Minister Seyed Abbas Araghchi has arrived in Islamabad on a two-day official visit to hold consultations with the Pakistani leadership on the evolving Middle East situation and discuss bilateral ties with Pakistan, state-run media reported on Tuesday. 

Araghchi was welcomed by Pakistan’s Additional Foreign Secretary (Afghanistan and West Asia) Ambassador Ahmed Naseem Warraich upon his arrival in Islamabad, a foreign office press release said. 

Araghchi’s Islamabad visit takes place after last month’s escalation in hostilities between Iran and Israel, with both countries firing missiles at each other. Israel carried out strikes against Iran on Oct. 26, saying it was responding to missile attacks conducted by Tehran earlier in the month.

Since the deadliest attack in its history on Oct. 7, 2023, Israel has been fighting Hamas in Gaza and since late September, it has been at war with Hezbollah in Lebanon. Both Hezbollah and Hamas are allies of Iran. Pakistan, a major ally of Saudi Arabia, shares a long border with Iran.

“Iranian Foreign Minister Seyed Abbas Araghchi arrived here late Monday night on a two-day official visit to hold consultations with Pakistan’s leadership on the situation in the Middle East and bilateral relations,” state-run Associated Press of Pakistan (APP) reported. 

The APP said Araghchi will meet Prime Minister Shehbaz Sharif and Deputy Prime Minister and Foreign Minister Ishaq Dar during his two-day visit. 

“This visit provides an important opportunity to advance cooperation and dialogue between Pakistan and Iran on a wide range of areas including trade, energy and security,” APP said. 
Pakistan and Iran have had a rocky relationship despite several commercial pacts between the two countries on trade, energy and security. Both countries signed the $7 billion Iran-Pakistan gas pipeline project agreement in 2004 but 20 years on, the project remains incomplete. Tehran has completed the pipeline’s construction on its side of the border while Pakistan is seeking a US waiver to go ahead with it due to international sanctions targeting Tehran. 
Pakistan and Iran are also often at odds over instability on their shared porous border, with both countries routinely trading blame for not rooting out militancy.
Tensions surged in January when Pakistan and Iran exchanged airstrikes, both claiming to target alleged militant hideouts in each other’s countries. Late Iranian president Ebrahim Raisi visited Pakistan in April on a three-day visit aimed at strengthening bilateral relations and easing tensions. The two sides also signed memorandums of understanding in the fields of trade, science technology, agriculture, health, culture, and judicial matters. 


Pakistan reports fresh polio case from Balochistan, taking 2024 tally to 46

Updated 10 min 23 sec ago
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Pakistan reports fresh polio case from Balochistan, taking 2024 tally to 46

  • Poliovirus detected in male child from Killa Saifullah district, says polio eradication program
  • Pakistan’s immunization campaigns suffer from misinformation campaigns and militant attacks

KARACHI: Pakistan’s southwestern Balochistan province has detected a fresh poliovirus case in a male child, the country’s polio eradication program said on Tuesday, taking the total number of cases reported this year to 46 as Islamabad struggles to clamp down on the infection. 

The National Institute of Health’s (NIH) laboratory confirmed detecting the virus in a male child from Killa Saifullah district in Balochistan, the program said. 

“This is the second polio case from Killa Saifullah, where several environmental samples have tested positive for WPV1,” the Pakistan Polio Eradication Program said. “So far, 23 cases have been reported from Balochistan province, 12 from Sindh province, nine from KP and one each from Punjab and Islamabad.”

Pakistan and Afghanistan are the only two countries where polio remains endemic. Since late 2018, Pakistan has seen a resurgence of cases and increased spread of poliovirus, highlighting the fragility of gains achieved in the preceding years when cases dropped in 2023 to six, from 20 in 2022 and just one in 2022. Misinformation about vaccinations and attacks by militants on polio teams have been major impediments to immunization campaigns.

At least seven people, including five school students, were killed and 23 injured in a blast in southwestern Pakistan that targeted a polio vaccination team vehicle on Friday, police said. No group has claimed responsibility for the attack. Last Tuesday, a policeman was killed in an attack on a health office that manages door-to-door polio vaccination campaigns.

The attacks have coincided with Pakistan’s third nationwide polio campaign this year, launched last week with the aim to administer vaccine drops to more than 45 million children.

Pakistani Prime Minister’s Focal Person for Polio Eradication, Ayesha Raza Farooq, has said that the government is revamping its polio eradication program to make the country free of the virus by mid next year.

“WPV1 has been detected in 76 districts, indicating widespread circulation of the virus and a continued serious risk to children’s well-being from a disease that can paralyze them for life,” the polio eradication program said. 
“Multiple doses of the oral polio vaccine and completion of the routine vaccination schedule for all children under the age of five is essential to keep them protected.”


Pakistan PM says policy rate reduction to enhance business activities, boost employment

Updated 15 min 51 sec ago
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Pakistan PM says policy rate reduction to enhance business activities, boost employment

  • Pakistan’s central bank slashed key policy rate by 250 basis points to 15 percent on Monday 
  • With fourth straight reduction since June, Islamabad aims to revive sluggish economy 

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif has welcomed the central bank’s decision to cut the policy rate by 250 basis points, saying the move would help boost the country’s business activities and enhance employment opportunities, state-run media reported on Tuesday.

Pakistan’s central bank slashed its key policy rate by 250 basis points to 15 percent on Monday for a fourth straight reduction since June. The development takes place as Islamabad attempts to revive a sluggish, fragile $350 billion economy as inflation eases. 

Monday’s move follows cuts of 150 bps in June, 100 bps in July, and 200 in September that have taken the rate from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 700 bps in under five months.

“Prime Minister Shehbaz Sharif says the reduction in policy rate will enhance business activities, exports and employment opportunities in the country,” state broadcaster Radio Pakistan reported. 

Sharif was chairing a meeting of the ruling Pakistan Muslim League-Nawaz’s (PML-N) parliamentary party on Monday when he touched upon the central bank’s move. The premier noted that inflation has reduced from an alarming 38 percent in May 2023 to 7 percent at present.

The Pakistani premier informed members of the PML-N parliamentary party about his visit to Saudi Arabia and Qatar last week, saying that “a new chapter” has been added to the Pakistan-Saudi investment partnership. 

“The Saudi leadership assured all kinds of support for the stability and development of Pakistan’s economy,” Sharif said according to the state broadcaster. 

The Pakistani prime minister also informed the lawmakers about his visit to Qatar, saying that the Qatari leadership also assured an increase in investment for Pakistan. He said talks were held between both sides on giving “a practical shape” to projects worth $3 billion in Pakistan. 

“He said Qatar will invest in various sectors including aviation, hoteling, information technology and energy sectors in Pakistan,” the state broadcaster said. “Shehbaz Sharif said the government is taking steps on a priority basis to facilitate investment and increase foreign investment in Pakistan.”


Pakistan parliament approves bills to extend tenure of services chiefs to five years

Updated 04 November 2024
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Pakistan parliament approves bills to extend tenure of services chiefs to five years

  • Extension in services of army, navy and air force chiefs follows controversial amendments to the constitution last month
  • The opposition PTI party condemns the amendments for changing Pakistan “from a democracy into a monarchy”

ISLAMABAD: Pakistan’s National Assembly and Senate on Monday approved bills to extend the tenure of the army, navy, and air force chiefs from three to five years, amid protests by the opposition benches. 

The office of the army chief is considered to be the most powerful in the country, with the army having ruled Pakistan for almost half of its 75-year history. Even when not directly in power, the army is considered to be the invisible guiding hand in politics and holds considerable sway in internal security, foreign policy, and economic affairs, among other domains. 

Six bills were passed by the upper and lower houses on Monday evening, including one to increase the term of the services chiefs.

“In the said Act, in section 8A, in sub-section (1), for the expression “three (03)” the word “five (05)” shall be substituted,” read the bill, seeking to amend the Pakistan Army Act, 1952.

Similar bills were passed to increase the duration of the country’s naval and air force chiefs to five years also. 

“The purpose of these amendments are to make consistent the Pakistan Army Act, 1952 (XXXIX of 1952) The Pakistan Navy Ordinance, 1961 (Ordinance No. XXXV of 1961) and The Pakistan Air Force Act, 1953 (VI of 1953) with the maximum tenure of the Chief of the Army Staff, the Chief of the Naval Staff and the Chief of the Air Staff and to make consequential amendments for uniformity in the aforementioned laws.” 

Speaking outside parliament, the chairman of the opposition PTI party, Gohar Ali Khan, said:

“Today, democracy has been changed into a monarchy.”

Leader of the Opposition in the National Assembly, Omar Ayub Khan, said “modifying the service chiefs’ tenure is not a good thing for the country and the armed forces.”

The passage of the new bills follows controversial amendments made to the constitution last month, granting lawmakers the authority to nominate the chief justice of Pakistan, who previously used to be automatically appointed according to the principle of seniority.

The amendments allowed the government to bypass the senior-most judge of the Supreme Court, Justice Mansoor Ali Shah, and appoint Justice Yahya Afridi as the country’s top judge, replacing former chief justice Qazi Faez Isa. 

The opposition and the legal fraternity had opposed the amendments, arguing that they were aimed at granting more power to the executive in making judicial appointments and curtailing the independence of the judiciary. The government denies this.


Pakistani forces kill six militants in shootouts near border with Afghanistan — military

Updated 04 November 2024
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Pakistani forces kill six militants in shootouts near border with Afghanistan — military

  • Pakistan’s Khyber Pakhtunkhwa province, which borders Afghanistan, has witnessed a number of attacks recently
  • Pakistan blames the surge in militancy on militants operating out of Afghanistan, Kabul denies the allegations

ISLAMABAD: Pakistani security forces have killed six militants in two separate engagements in the country’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Monday.
A militant was killed in an exchange of fire during an intelligence-based operation in North Waziristan’s Dosali area, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
In the second incident, Pakistani forces intercepted a group of militants while infiltrating the country’s border with Afghanistan in the South Waziristan district. Five militants were killed as a result.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” the ISPR said in a statement.
“Interim Afghan Government is expected to fulfil its obligations and deny the use of Afghan soil by Khwarij [militants] for perpetuating acts of terrorism against Pakistan.”
Khyber Pakhtunkhwa, which borders Afghanistan, has witnessed a number of attacks by the Tehreek-e-Taliban Pakistan (TTP) and other militant groups that targeted security forces convoys and check posts, besides targeted killings and kidnappings of law enforcers and government officials in recent months.
Pakistan has frequently accused neighboring Afghanistan of sheltering and supporting militant groups, urging the Taliban administration in Kabul to prevent its territory from being used by armed factions to launch cross-border attacks.
Afghan officials, however, deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.