The Saudi group that bought Karachi Electric Supply Corporation in 2005 has re-emerged after the downfall of Arif Naqvi, head of Dubai-based private equity firm, The Abraaj Group.
According to the details, Sheikh Abdul Aziz Hammad Aljomaih, owner of Aljomaih Holding Company of Saudi Arabia, spent a very busy day after arriving in Pakistan early in the morning.
He met President Arif Alvi, Sindh Governor, Prime Minister Imran Khan, Finance Minister, Energy Minister and Privatization Minister as well as some key stakeholders.
The meetings were also attended by senior officials of all the major ministries concerned.
He also spent a busy day in Karachi and held a series of meetings with stakeholders before returning home.
After the meeting, Sindh Governor Imran Ismail Tweeted, “Shaikh Abdul Aziz Hamad Aljomaih of the Aljomaih group of Saudi Arabia has expressed keen interest in investment in the electric sector. He vows to transform KE into a viable profitable organisation. Expression of interest reflects confidence over the policies of the present government.”
Shaikh Abdul Aziz Hamad Aljomaih of Aljomaih group of Saudi Arabia has expressed keen interest in investment to electric sector. He vows to transform KE into a viable profitable organisation.Expression of interest reflects confidence over the policies of the present government. pic.twitter.com/7oo5Hd2vAx
— Imran Ismail (@ImranIsmailPTI) March 16, 2021
Sheikh Abdul Aziz Hammad Aljomaih made the visit following a series of contacts with the K-Electric management, some of its foreign board of directors, the government over the past settlement of heavy payable and receivables and the company’s sale to Shanghai Electric.
Informed sources said that the high profile personality discussed a business program, the difficulties faced by K-Electric and the overall situation of investment and business in the country.
An official said it appeared that after the arrest of Arif Naqvi in London for alleged misuse of security funds, the Aljomaih group was claiming to be the real owner of K-Electric.
According to reports, the Saudi businessman briefed the authorities on the Aljomaih Group’s investment strategy and said that the initial investment in Pakistan was due to the strong brotherhood between the people of the two countries and that it still overcomes the difficulties facing by K-Electric.
He told officials that the group had large investment funds, which, after acquiring the loss-making enterprises, restructured them into profitable ones.
Apparently referring to Shanghai Electric, he said that now is the time to run K-Electric through a technical team.
Aljomaih Group has invested in K-Electric in the 15 years since its privatization in 2005. The Saudi tycoon was also the first chairman of K-Electric’s board of directors at the time.
Earlier, the apex court had rejected a petition filed by the federal government seeking settlement of financial claims of Rs 3 trillion and opposition claims of K Electric and other government entities.
On the other hand, federal secretaries and heads of companies have been reluctant to get involved in disputes over the settlement for the past 5-6 years.
As a result, the possible transfer of a majority stake in K-Electric to Shanghai Electric has been stalled for years, and the troubled company is not taking significant steps to improve its system in the country’s largest city. Consumers are affected in the summer.