ISLAMABAD: Following the collapse of the previous deal, President Asif Ali Zardari extended a renewed invitation on Monday to Shanghai Electric Power Company to invest in Pakistan’s energy sector, assuring that any “outstanding issues” will be resolved amicably.
The assurance comes after Shanghai Electric’s recent withdrawal of their $1.77 billion bid to acquire a 66.4 per cent stake in Karachi-based K-Electric, due to shifting dynamics in Pakistan’s business climate.
At the time, Shanghai Electric said the deal was terminated to protect its shareholders and company’s direction because the counterparty, Abraaj Group, did not meet closing conditions.
The acquisition had faced significant hurdles as K-Electric struggled with regulatory approvals amid Pakistan’s rising circular debt in the power sector.
Assures any ‘outstanding issues’ will be resolved amicably; signs MoU to establish coal gasification plant in Thar
According to a statement from the Presidency, Mr Zardari visited the company’s headquarters and witnessed the signing of a Memorandum of Understanding (MoU) for the establishment of a coal gasification plant in Thar, Sindh.
The project is the first of its kind based on Thar coal and is expected to meet energy needs while also supporting the country’s agriculture sector, the statement said.
The MoU was signed between MFTC Coal Gasification & Manufacturing (Pvt) Ltd, represented by CEO Shahid Tawawalla, and Sino Sindh Resources (Private) Ltd / Shanghai Electric, represented by CEO Lin Jigen.
Meeting with Shanghai Electric Chairman Wu Lei, Mr Zardari invited the company to explore further investment in the modernisation of Pakistan’s transmission and distribution network.
He thanked the chairman for the company’s contribution to Pakistan’s energy needs and socio-economic development.
The chairman of Shanghai Electric briefed the president on the company’s existing projects in Pakistan, which include work in Thar coal, nuclear energy, and coal-fired power plants.
In response, Mr Zardari reaffirmed Pakistan’s commitment to enhancing security measures to ensure a safe environment for Chinese workers in the country. The company’s CEO expressed gratitude to the Pakistani government for the security arrangements provided to their employees.
Earlier, Mr Zardari visited the Memorial of the First National Congress of the Communist Party of China (CPC) in Shanghai, where the party was founded in July 1921.
The president was accompanied on his visit by First Lady Aseefa Bhutto-Zardari, PPP Chairman Bilawal Bhutto-Zardari, and Senator Saleem Mandviwalla. Also present were Sindh ministers Sharjeel Memon and Syed Nasir Shah, along with senior officials.
Published in Dawn, September 16th, 2025