Islamabad, Feb 4: K-Electric’s robust financial position has been reaffirmed by VIS Credit Rating Company, which has maintained its AA/A1+ rating with a stable outlook. The ‘AA’ (Double A) long-term rating reflects strong financial health and a minimal risk of default, indicating the company’s ability to meet financial commitments with confidence.
While economic fluctuations may introduce slight variations, KE’s rating underscores its solid financial foundation, strategic debt management, and investor trust—key factors in securing funding for major initiatives such as its $2 billion investment plan.
Additionally, the A1+ short-term credit rating highlights KE’s strong liquidity, effective cash flow management, and minimal default risk, reinforcing its ability to meet financial obligations promptly. This rating was last confirmed in June 2024.
Regulatory approvals remain critical in KE’s financial strategy, influencing investment planning and operational sustainability in Pakistan’s dynamic power sector. The company is actively engaged in ensuring timely tariff finalizations, which are essential for maintaining financial stability and debt servicing.
KE recently appeared before NEPRA for a hearing regarding its 220MW Site Neutral Hybrid Project, a pioneering initiative in Pakistan’s energy sector.
Read More:
Saudi Fund for Development (SFD) delegation calls on the Prime Minister
This project secured the country’s lowest tariff bid of 3.09 cents/kWh, submitted by JCM Power, a Canadian firm, aligning with KE’s goal of incorporating 30% renewable energy into its power generation mix while reducing reliance on imported fuels.
Following the receipt of project bids in August 2024, KE submitted its Bid Evaluation Report (BER) for regulatory approval the next month. With bid bond validity nearing expiration, regulatory approvals will be crucial in ensuring the seamless execution of these renewable energy projects.
Earlier, in December 2024, NEPRA conducted hearings on KE’s proposed 150MW solar power projects in Bela and Winder. The company remains committed to expanding its renewable energy footprint, planning the development of 640MW renewable projects across Sindh and Balochistan.
The year 2024 marked significant milestones for KE, with NEPRA approving its $2 billion investment plan in April, the Power Acquisition Plan (PAP) in May, and its generation tariff in October. These approvals are pivotal for the company’s efforts to enhance its energy infrastructure, serve an expanding customer base, and diversify its power generation portfolio.
As regulatory bodies deliberate on final decisions related to distribution, transmission, and supply tariffs, as well as write-off claims linked to KE’s Multi-Year Tariff (2017-2023), the company remains focused on driving transformative energy projects. Regulatory approvals will be instrumental in sustaining momentum, positioning KE as a key player in Pakistan’s energy transition, and ensuring long-term sustainability in the power sector.