Karachi: K-Electric Limited, the primary electricity provider in Karachi, has encountered considerable delays in holding its Annual General Meetings (AGMs) due to ongoing disputes and regulatory challenges surrounding its Multi-Year Tariff (MYT) adjustments. The delays extend the timeline for finalizing financial statements for the fiscal years ending in June 2024 and 2025.
The last AGM was conducted on October 26, 2023, where the financial statements for the year ending June 30, 2023, were adopted. Per Section 132 of the Companies Act, 2017, the next AGM is mandated by October 28, 2026, to approve financial statements for the fiscal year ending June 30, 2026. However, regulatory complexities have pushed back these deadlines significantly.
K-Electric is a regulated entity under the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997. It prepares its financial statements according to tariffs set by the National Electric Power Regulatory Authority (NEPRA). The company’s MYT, which expired in June 2023, faced a delayed approval process despite efforts initiated in December 2022 for a new control period. The MYT was eventually approved and published on July 18, 2025.
According to information available from the Pakistan Stock Exchange (PSX), K-Electric uploaded necessary disclosures for FY2024 on September 23, 2025. However, NEPRA’s subsequent notices and hearings on tariff determinations hindered K-Electric from issuing audited financial statements post-June 2023. The decision on review motions led to a significant tariff reduction, prompting K-Electric to file appeals challenging the sustainability of the revised tariff.
K-Electric’s appeals before the NEPRA Appellate Tribunal were dismissed on September 23, 2026, confirming NEPRA’s decisions from October 2025. K-Electric has since filed further appeals with the High Court of Sindh, which issued an interim order on October 7, 2026, suspending the Tribunal’s and NEPRA’s orders pending further hearings.
As the situation unfolds, K-Electric remains entangled in legal and regulatory proceedings with substantial implications for its financial planning and operations.