A

B
S
T
R
A
C
T

Pr
oj
e
ct
Pr
o
p
os
al

Companys Background:
K-Electric Limited formerly known as Karachi Electric Supply Company Limited (KESC) is at
present the only vertically-integrated power utility in Pakistan that manages the generation,
transmission and distribution of electricity to the city. The Company covers a vast area of over
6,500 square kilometers and supplies electricity to all the industrial, commercial, agricultural and
residential areas that come under its network, comprising over 2.2 million customers in Karachi
and in the nearby towns of Dhabeji and Gharo in Sindh and Hub, Uthal, Vindar and Bela in
Balochistan.
K-Electric is also one of the citys largest employers with nearly 11,000 people currently
working for it.
Over the last few years, KESC has demonstrated a strong ability to bring about a sustainable
change. It has pursued a path of visible growth and transformation which has placed it amongst
the most dynamic institutions in Pakistan and in the region.
KE bit of history
K-Electric was established one hundred years ago on September 13, 1913 and is one of the oldest
companies operational in Karachi. It was set up under the Indian Companies Act of 1882 as the
Karachi Electric Supply Corporation KESC. The entity was nationalized in 1952 but reprivatized on November 29, 2005. KESC came under new management in September, 2008 and
was renamed as the Karachi Electric Supply Company.

Vision statement
To restore and maintain pride in KE, Karachi and Pakistan

Mission Statement
Brightening lives by building the capacity to deliver uninterrupted, safe and affordable power to
Karachites.

Current situation of the company

At this point, it was transformed into a profitable entity and is today a globally recognized
example of an unprecedented turnaround.

Product line of Karachi Electric:

Providing electricity all over Karachi including Uthal Bela and Dhabeji.

Industry Analysis:
Electricity is considered as a life line of any economy and the most vital instrument of
socioeconomic development of a country. Electricity is pivotal in running machinery in
factories and industrial units, for lighting our cities and powering our vehicles. The
challenge of ensuring electricity access for industries and providing increased
access to the poor parts of the population is the key issue for any government.
Pakistans energy infrastructure is not well developed, rather it is considered to be
underdeveloped and poorly managed. Currently the country is facing severe energy
crisis. Despite of strong economic growth and rising energy demand during past
decade, no serious efforts have been made to install new capacity of generation.
Moreover, rapid demand growth, transmission losses due to outdated infrastructure,
power theft, and seasonal reductions in the availability of hydropower have
worsened the situation. Consequently, the demand exceeds supply and hence loadshedding is a common phenomenon through power shutdown.
The Power sector was restructured in 1998 with the creation of PEPCO (Pakistan
Electric Power Company. Prior to 1998, there were two vertically integrated utilities,
i.e. KE (formerly known as KESC), which served the Karachi area and WAPDA which
served the rest of the country. Later on, WAPDAs power wing has been structured
into distinct corporate entities comprising of 4 GENCOs, 10 DISCOs and one
Transmission company, National Transmission and Dispatch Company (Exhibit 1).
These 10 DISCOs are responsible for distribution to the end users. KE meets its
overall demand with its own generation plus purchase from NTDC, IPPs and from
Karachi Nuclear Power Plant.
There has been an enormous increase in the demand of energy as a result of
industrial development and population growth, in comparison to enhancement in
energy production. Supply of energy is, therefore, far less than the actual demand,
resultantly crisis has emerged. Pakistans energy infrastructure is not well
developed, rather it is considered to be underdeveloped and poorly managed.
Currently the country is facing severe energy crisis. Despite of strong economic

growth and rising energy demand during past decade, no serious efforts have been
made to install new capacity of generation. Moreover, rapid demand growth,
transmission losses due to outdated infrastructure, power theft, and seasonal
reductions in the availability of hydropower have worsened the situation.
Consequently, the demand exceeds supply and hence load-shedding is a common
phenomenon through power shutdown. Due to an unrealistic power tariff, high
inefficiencies, low payment recovery and the inability of the government to manage
its subsidies mechanism that lead to a serious circular debt issue which is
becoming a barrier for future energy sector investment. The economy is badly
affected by electricity crisis with loss of huge capital.
Electricity in Pakistan is generated from a combination of the following sources:

Thermal
Solar
Wind
Hydel
Biodiesel
Nuclear

Contact Person:
Mir Masood Rashid
General Manager
Bulk Business Department
K-Electric Ltd.

Exhibit 1:

References:

1. An Overview of Electricity Sector in Pakistan. (n.d.). Retrieved October 5, 2015.