K-Electric is facing mounting financial pressure as banks halt new financing and withdraw existing credit facilities amid an unresolved tariff dispute, ARY News reported.
According to the report, around Rs65 billion in liquidity has been withdrawn from K-Electric accounts, including Rs30 billion pulled back directly from the power utility by banks.
The financial strain has been linked primarily to uncertainty surrounding K-Electric’s tariff framework for the 2024–2030 period, which has yet to be finalised.
The National Electric Power Regulatory Authority (NEPRA) initially issued a tariff of Rs39 per unit in 2025, following a two-year delay. However, the regulator subsequently took suo motu notice, suspended that tariff and issued a revised rate of Rs32 per unit.
The reduction has significantly affected K-Electric’s financial position, according to the report.
K-Electric has challenged the revised tariff before the NEPRA tribunal, where a decision on its petition remains pending.
Sources said the resulting cash shortage was beginning to affect the company’s operations, with procurement and other routine activities facing disruption as financial pressures increase.
K-Electric has also written to the Pakistan Stock Exchange (PSX), linking the delay in publishing its financial statements to the unresolved tariff proceedings. The company said the statements could not be finalised while the tariff matter remained sub judice before the NEPRA tribunal.
Sources warned that maintaining operations could become increasingly difficult if the lower tariff remains in place.
According to the report, K-Electric has faced an overall financial loss of approximately Rs80 billion amid the continuing dispute.