Karachi: A decision has been made to initiate the winding up of Mehren Energy Limited (MEL), a wholly-owned subsidiary, as disclosed by the board of directors following their meeting on July 28, 2025. The announcement comes in compliance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1(a) of the Rule Book of the Pakistan Stock Exchange Limited.

Mehren Energy Limited was incorporated in 2016 with the intention of developing a 26.5 MW bagasse-based high-pressure co-generation project. The project’s progress was halted due to the Central Power Purchasing Agency – Guarantee (CPPA-G) refusing to sign the necessary Implementation Agreement (IA) and Power Purchase Agreement (PPA).

According to information available from the Pakistan Stock Exchange (PSX), the subsidiary had a paid-up capital of Rs. 40 million. The decision to wind up the company marks a significant move in the market category.

The halting of the project underscores ongoing challenges in securing critical agreements necessary for the advancement of energy initiatives within the country. As the company moves forward with the winding-up process, stakeholders will be closely watching for developments and resolutions regarding the subsidiary’s assets and obligations.