K-Electric Limited (PSX: KEL) is seeking up to $400 million from foreign lenders to help fulfill its rising power demand as the country struggles to cope with troubles in the energy sector, reported Bloomberg.
Chief Executive Officer Moonis Abdullah Alvi said in an interview that the utility is in talks with international financial institutions to raise around $350 million to $400 million. KEL has asked for government permission for a $2 billion expenditure plan over the next seven years, whereby the distributor aims to enhance its renewable energy mix to 30 percent by 2030, expand generation capacity, and strengthen the infrastructure.
Alvi hinted that the utility is preparing for competition and is looking to buy minority holdings of less than 20 percent in new power plants to maintain its energy supply while also switching fuel oil power plants to coal.
This comes as Pakistan struggles to cope with skyrocketing energy costs. Household electricity bills have spiked dangerously since last year, with the most recent increase in power bills sparking nationwide protests by citizens.
