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Power Sector: A Case Study of K-Electric

In: The Face of Privatization in Pakistan

Author

Listed:
  • Ghulam Samad

    (CAREC Institute)

  • Naseem Faraz

    (Pakistan Institute of Development Economics)

Abstract

Amidst operational inefficiencies and financial struggles, K-Electric (formerly KESC) faced substantial challenges necessitating its privatization in 2005. Chapter 6 provides an in-depth case study of K-Electric (formerly KESC), tracing its history from its origins as a private entity to its nationalization and eventual privatization. Following its privatization, the efforts made by the new management, particularly the Abraaj Group, to improve K-Electric’s performance through capital injection and operational reforms. However, despite these efforts, K-Electric has struggled to achieve sustained profitability and address systematic issues such as transmission and distribution losses. Despite some improvements in operational efficiency, K-Electric remains ineffective in meeting Karachi’s energy demands efficiently. Thus, this chapter underscores the need for further analysis and intervention to address the challenges facing K-Electric and the power sector in Pakistan, emphasizing the importance of sustainable solutions to ensure reliable and affordable energy supply for the residents of Karachi.

Suggested Citation

  • Ghulam Samad & Naseem Faraz, 2024. "Power Sector: A Case Study of K-Electric," Springer Books, in: The Face of Privatization in Pakistan, chapter 0, pages 77-94, Springer.
    • Handle: RePEc:spr:sprchp:978-981-97-8385-4_6
    DOI: 10.1007/978-981-97-8385-4_6
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