K-Electric

The power division attributed a Rs61 billion increase in power sector circular debt to the Ministry of Finance, citing a Rs98 billion budget deduction. Despite this, the division highlighted a reduction in power distribution company losses from Rs591 billion in FY24 to Rs326 billion in FY25, attributing progress to sector reforms.

Water supply to several parts of Karachi resumed in phases after electricity was restored at the Dhabeji pumping station following a 22-hour outage caused by a cable fault. The disruption led to a 48 million gallon water shortfall, affecting areas like North Nazimabad, Nazimabad, and Gulberg Town. K-Electric confirmed the fault was internal and not related to their operations.

The Karachi Water and Sewerage Corporation warned that parts of Karachi may face water shortages due to a power breakdown at the Dhabeji pumping station, which caused three pumps to shut down and is expected to create a 75 million gallon per day shortfall. Affected areas include North Nazimabad, Nazimabad, Gulberg Town, New Karachi, Landhi, Korangi, and Scheme 33, with K-Electric working to resolve the cable fault.

Karachi's DHA City became the first private entity in Pakistan to receive 21-year licenses for electricity distribution and supplier of last resort (SoLR) from Nepra. The licenses, granted to DHA Energy Supply Company (Desco), cover DHA City Karachi and were approved despite objections from K-Electric, Gepco, and CPPA.

A power failure at Dhabeji Pumping Station disrupted operations of Karachi Water and Sewerage Corporation (KWSC), reducing the city's water supply by 100 million gallons per day. Three major pumps at the K-2 Pumping Station were temporarily shut down, affecting areas like North Nazimabad and Federal B. Area. Emergency repairs are underway to restore water supply.

The article argues that privatizing Pakistan's electricity distribution companies (Discos) will not resolve systemic issues in the power sector, as both technical and commercial losses persist. It highlights that rising electricity costs are driving consumers, including industrial users and households, toward alternatives like captive generation and solar, weakening the financial viability of utilities.

The Karachi Metropolitan Corporation (KMC) plans to impose a 1% 'entertainment tax' on hotels, marriage halls, and similar venues to generate Rs1 billion annually. The tax, pending City Council approval, aims to strengthen KMC's finances and improve public services, with a public hearing scheduled for June 10. This follows the implementation of the Municipal Urban Community Tax (MUCT) in 2024, which generates Rs4 billion annually via K-Electric bills.