Aurangzeb Assures K-Electric of Addressing Delayed Payments

Aurangzeb Assures K-Electric of Addressing Delayed Payments

Karachi, July 8, 2024 – Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Monday assured K-Electric (KE) that the government would address issues related to delayed payments.

This assurance came during a meeting with a delegation from K-Electric, which included CEO Syed Moonis Abdullah Alvi, CFO Muhammad Aamir Ghaziani, and Chief Regulatory Affairs Officer Muhammad Imran Qureshi.

The meeting, held at the finance ministry, focused on resolving the financial challenges faced by K-Electric, particularly the delays in payments of consumer bills collected through the post office. The delegation emphasized the need for timely settlements to ensure the smooth operation and financial stability of the power utility serving Karachi.

Senator Aurangzeb acknowledged the concerns raised by the KE delegation and reiterated the government’s commitment to support the utility in overcoming these challenges. He highlighted the importance of K-Electric’s role in providing reliable electricity to Karachi, the country’s economic hub, and urged the company to prioritize improving service delivery.

Aurangzeb also called on K-Electric to expedite its plans for adding cheaper generation capacity. By incorporating more cost-effective energy sources, the company can reduce the overall cost of electricity for consumers, a critical step in alleviating the financial burden on residents and businesses in Karachi.

Earlier in the meeting, K-Electric representatives provided an update on the progress made since the agreement signed between the government and K-Electric earlier this year. This agreement addressed several longstanding issues, allowing K-Electric to focus on implementing new generation projects aimed at enhancing its electricity mix. The company is now working vigorously to bring these projects to fruition, which will ultimately lead to more stable and affordable electricity supply for its consumers.

The delegation’s discussion with Finance Minister Aurangzeb also underscored the importance of financial stability and operational efficiency. Delayed payments, especially those collected through the post office, pose significant challenges to K-Electric’s cash flow and overall financial health. The representatives stressed that resolving these delays is crucial for the utility to maintain its service standards and continue its development projects without interruption.

Senator Aurangzeb assured the delegation that the government would take necessary measures to address the delayed payments issue promptly. He emphasized that the government values the role of K-Electric in the national grid and is committed to ensuring its financial and operational stability.

The meeting marked a step forward in addressing the financial issues faced by K-Electric. With the government’s assurance of support and the company’s commitment to enhancing its service and reducing costs, there is optimism for a more stable and efficient electricity supply in Karachi.