Prime Minister Shehbaz Sharif has reportedly sent a special delegation, led by Minister for Power Sardar Awais Khan Leghari, to Saudi Arabia. Their mission is to transform the recently signed Memoranda of Understanding (MoUs) worth $2.8 billion into legally binding contracts and to resolve ongoing issues related to K-Electric, Business Recorder reported.

Last week, Prime Minister Sharif met with Saudi Crown Prince Muhammad bin Salman and Saudi Minister for Investment Khalid al-Falih to discuss matters related to investment. Following these talks, the Saudi Investment Minister revealed to the media that the number of MoUs has increased from 27 to 34, resulting in a rise in projected investment from $2.2 billion to $2.8 billion.

Sources indicated that unresolved issues surrounding K-Electric are a significant concern affecting future Saudi investments. This matter was also highlighted during the recent visit of a Saudi delegation.

During his visit to Saudi Arabia last week, Prime Minister Sharif mentioned that he would bring positive news regarding Saudi investments during his upcoming trip, scheduled for the next few days.

On July 19, 2024, Managing Director of Investments at the Aljomaih Group, Abdulaziz Hamad Aljomaih, sent a letter to the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the Prime Minister, and the Special Investment Facilitation Council (SIFC). In the letter, he addressed an attempted corporate raid on K-Electric Limited (KEL) and urged the SECP to take action against requests that sought to lift restrictions on changes to the company’s board.

In response to inquiries about the letter, the SECP stated that there have been no changes to the status of K-Electric’s affairs at this time.

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.

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,” SECP said.

“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.

In his letter, Abdulaziz Hamad Aljomaih noted that he had reviewed Chishty’s unsolicited letter to the SECP dated July 5, 2024, which attempted to clarify the corporate raid on K-Electric (KE).

“I have had the privilege of meeting with the Prime Minister of Pakistan and other respected leaders, where we discussed this issue in detail. I have been assured that all matters related to KE will be resolved promptly and fairly,” Aljomaih wrote.

To promote transparency, he provided a detailed note from legal counsel outlining the relevant facts and ongoing litigation across different jurisdictions to ensure a comprehensive understanding of the situation.

“Our concerns as foreign investors in Pakistan are serious and legitimate,” he added. Aljomaih stressed the Aljomaih Group’s commitment to the success of K-Electric, voicing significant concerns regarding Chishty’s attempted corporate raid and his requests to the SECP to lift restrictions on changes to KE’s board.

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“It is entirely appropriate for the SECP to take enforcement action to uphold Pakistan’s laws and prevent any intrusions into KE’s board. Such measures are essential to protect the people of Karachi, investors (including foreign ones) in KE, and the Government of Pakistan,” he stated.

Aljomaih also indicated that the Ministry of Investment of Saudi Arabia is monitoring this issue to facilitate further foreign investments in the country. Sources suggest that the delegation will finalize the agreements before the Prime Minister’s upcoming visit to Saudi Arabia in the next few days.