After years of disputes, K-Electric, Karachi’s primary electricity provider, has begun clearing outstanding dues owed to the Sindh government, specifically related to electricity duty.

The company has already paid over PKR 1.25 billion in two installments as part of an agreement to settle a total of PKR 9.142 billion out of the PKR 32 billion in outstanding dues. According to the agreement, K-Electric is committed to clearing PKR 4.258 billion by September 2025. Additionally, the company is now obligated to deposit the electricity duty collected from consumers each month to the Sindh government.

K-Electric collects electricity duty from consumers through monthly electricity bills on behalf of the Sindh government. However, the non-payment of these collected funds had resulted in an accumulated debt exceeding PKR 32 billion, a matter that was under review by the Public Accounts Committee (PAC).

To address this, K-Electric has started making regular monthly payments of the electricity duty and has provided a payment schedule to the government through formal correspondence.

K-Electric is also addressing a separate dispute with the Karachi Water and Sewerage Board (KWSB), which owes the company PKR 25 billion. This matter remains unresolved and is still under negotiation. In addition to settling its dues, K-Electric has issued warnings to various Sindh government departments, urging them to clear their outstanding electricity bills promptly. The company has emphasized that failure to pay these bills on time could lead to the disconnection of government connections.

The issue of unpaid dues has been a longstanding point of contention. The company’s adherence to the new payment schedule and regular electricity duty deposits will be critical in maintaining a cooperative relationship with the provincial government.