Pakistan state-run electricity sale by November

ISLAMABAD -- The privatisation of Pakistan's state-run Karachi Electric Supply Corporation is expected to be completed by November this year.

The APP News Agency reported that PricewaterhouseCoopers (PwC), a consultant for the divestment of the state-run utility, said expressions of interest for the sale of KESC might be called for soon.

"PwC has already carried out initial negotiations with potential interested parties," Richard Gladhill of PwC was quoted as saying.

KESC is responsible for supplying electricity to Pakistan's largest city, Karachi, and has been on the government's privatisation list for four years. Its financial health has been a major impediment to its sale.

The utility earlier said the government would convert its huge debt of 92 billion rupees ($1.59 billion) -- most of which is owed to state-run financial institutions -- into equity.

Pakistan launched a major programme of privatisation in 2000.

The firm has a generating capacity of 1,750 megawatts, but produces only around 1,250 megawatts because of the poor state of its infrastructure.

Karachi-listed KESC, which has been in financial trouble because of a high level of electricity theft in Pakistan, has a market capitalisation of 3.8 billion rupees, with most of its shares held by state-run financial institutions.

Reuters