Lahore: Pakgen Limited, previously known as Pakgen Power Limited, has completed a significant transformation in its business strategy, as outlined in the Directors' Report dated August 28, 2026. The report details the developments that have occurred following the early termination of the company's Power Purchase Agreement, which took effect on January 31, 2025. As a result, the company has ceased its power generation activities and has shifted its focus towards investment opportunities.
The strategic repositioning was solidified during the Annual General Meeting held on April 27, 2026, where shareholders approved the transition of the company's principal line of business to investment activities. This decision also entailed a change in the company's name from Pakgen Power Limited to Pakgen Limited. Additionally, the shareholders approved the disposal and sale of the company's legacy power-generation assets, including plant and machinery, buildings, and consumables. The Securities and Exchange Commission of Pakistan (SECP) granted its approval for these changes, with the new name becoming effective in June 2026.
The company is now operating as an investment-focused entity while managing the preservation and planned disposal of its legacy assets, ensuring compliance with corporate, legal, and regulatory requirements. According to information available from the Pakistan Stock Exchange (PSX), the change in the company's primary business line has necessitated a reclassification of its financial statements. Assets from the legacy power-generation operations intended for sale are now classified as assets held for sale under IFRS 5, and income from these operations is recorded as profit or loss from discontinued operations.
In contrast, revenue from the company's new investment activities, which includes gains from the sale of investments, dividend income, and unrealized gains on mutual funds and equity investments, is recognized as revenue from continuing operations. The land and remaining buildings, which are retained for capital appreciation, are classified as investment property and are valued above their carrying amounts.
The transition marks a pivotal shift in the company's operations and strategic outlook, as it seeks to safeguard shareholder value through the disciplined deployment of capital in investment ventures.