President Asif Ali Zardari on Monday assured Shanghai Electric Power Company that any outstanding issues in its operations and projects in Pakistan would be amicably resolved, as he encouraged the firm to expand investments in the country’s energy infrastructure. The assurance came during his meeting with Shanghai Electric Chairman Wu Lei in Shanghai, part of his 10-day official visit to China.
The development followed Shanghai Electric’s recent announcement to terminate its long-pending offer to acquire a 66.4 per cent stake in K-Electric Ltd, citing changes in Pakistan’s business environment and unmet conditions by the counterparty.
The $1.77 billion transaction, initially agreed upon in 2016 with the Abraaj Group, had stalled for years due to regulatory hurdles and the mounting circular debt crisis in Pakistan’s power sector. KE, privatised in 2005, remains the sole power generator, transmitter, and distributor for Karachi and its adjoining regions.
During his visit, President Zardari urged Shanghai Electric to explore investment in modernising Pakistan’s transmission and distribution network. He expressed gratitude for the company’s role in meeting Pakistan’s energy needs, generating employment, and contributing to socio-economic growth.
The president also reaffirmed Pakistan’s commitment to ensuring the security of Chinese workers, a concern raised in the wake of previous attacks targeting foreign employees in the country.
The Shanghai Electric leadership, including CEO Lin Jigen, acknowledged Pakistan’s security measures and shared details of their ongoing projects in nuclear, coal, and power generation sectors.
President Zardari particularly highlighted the significance of the Thar coal project and its potential for coal gasification. He also witnessed the signing of a landmark Memorandum of Understanding between MFTC Coal Gasification & Manufacturing (Pvt) Ltd and Sino Sindh Resources (Pvt) Ltd/Shanghai Electric for establishing the country’s first Thar coal-based gasification and fertiliser plant.
Accompanied by First Lady Bibi Aseefa Bhutto-Zardari, PPP Chairman Bilawal Bhutto-Zardari, and senior ministers, President Zardari underlined Pakistan’s commitment to deepening economic cooperation with China, particularly in the energy sector.
