ISLAMABAD: Prime Minister Shehbaz Sharif is said to have despatched a special delegation led by Minister for Power Sardar Awais Khan Leghari to Saudi Arabia to convert Memoranda of Understanding (MoUs) worth $ 2.8 billion recently signed between both the countries into legally binding contracts and sort out longstanding issues of K-Electric, well informed sources told Business Recorder.
Last week Prime Minister Sharif held meetings with the Saudi Crown Prince, Muhammad bin Salman and Saudi Minister for Investment, Khalid al-Falihand and discussed investment related issues.
Later on, Saudi Investment minister in a chat with media said that various MoUs have been enhanced to 34 from 27 signed in Islamabad, consequently the volume of projected investment has also increased to $ 2.80 billion from $ 2.2 billion.
PM for keeping momentum to develop strong economic partnership with KSA
The sources said one the key issues between Islamabad and Riyadh is unsettled issues of K-Electric, which are haunting future prospects of Saudi investment. The issue of KE was also raised during the visit of Saudi delegation last month.
Prime Minister Shehbaz Sharif stated in Saudi Arabia last week that he would deliver good news for Saudi investment in his next visit (which is due in the next few days).
In July 19, 2024, Abdulaziz Hamad Aljomaih, Managing Director of Investments for the Aljomaih Group wrote a letter to chairman SECP, prime minister and Special Investment Facilitation Council (SIFC) concerning an attempted corporate raid on K-Electric Limited (KEL), urging SECP to address solicitations made to the SECP to remove directives prohibiting any changes to the board of the power utility company.
Responding to a question regarding update on the letter, SECP said that there is no change in the status of KE affairs as of now.
“Al Jomaih, in its letter dated July 19, 2024, provided SECP with an update on the ongoing litigations across various jurisdictions. The status quo regarding K-Electric Limited remains unchanged and is consistent with the situation prior to the receipt of the letter from Al Jomaih. This letter has not affected the legal standing of the matter,” said SECP in response to question sent by Business Recorder.
Abdulaziz Hamad Aljomaih, in his letter had mentioned having come across Chishty’s unsolicited letter to the SECP dated July 5, 2024, which attempted to explain the corporate raid on KE.
“I have had the privilege of holding several meetings with the prime minister of Pakistan and other esteemed leaders, during which this issue has been discussed extensively. I have been assured that all KE-related matters will be resolved swiftly and fairly,” Aljomaih stated in his letter.
To ensure transparency, he included a comprehensive note from legal counsel detailing the factual background pertinent to this matter, aimed to provide a thorough understanding of the events and ongoing litigation across various jurisdictions.
“Our concerns as foreign investors in Pakistan are serious and genuine,” he continued. Aljomaih emphasized the Aljomaih Group’s commitment to ensuring K-Electric thrives, expressing grave concerns about Chishty’s attempted corporate raid and his solicitations to the SECP to lift the directive prohibiting changes to KE’s board.
“It is entirely appropriate for the SECP to take enforcement action to uphold Pakistan’s laws and prevent any incursions into KE’s board. Such actions are necessary to protect the people of Karachi, investors (including foreign investors) in KE, and the Government of Pakistan,” he maintained.
According to Aljomaih the Ministry of Investment of the Kingdom of Saudi Arabia is also following up on this matter to facilitate further foreign investments in the country. The sources said the delegation will finalize the pacts prior to the forthcoming visit of prime minister to Saudi Arabia within next few days.
Copyright Business Recorder, 2024