President Asif Ali Zardari has assured Shanghai Electric that Pakistan remains obliged to solve all excellent problems ‘in amure’. He invited the Chinese energy conglomerate to explore additional investment opportunities in the country’s power transmission and distribution infrastructure, reported state media on Monday.
The development took place during President Zardari’s visit to Shanghai Electric’s headquarters, just days after the company formally terminated its long-delayed acquisition of $ 1.77 billion of K-electric, with reference to Pakistan’s changing regulatory and business environment.
The president met Wu Lei President and visited corporate facilities in Shanghai, where he was informed of Shanghai Electric’s operations in Pakistan, including projects related to Thar-Kul, atomic energy and coal-fired power production.
The meeting came less than a week after Shanghai Electric’s Board of Directors approved a decision to withdraw from his bid to acquire a 66.4% share in K-electric from Kes Power Limited.
The deal – originally signed in 2016 – had been firmly in Limbo for almost nine years due to overlapping legislative obstacles, legal disputes and financial volatility in Pakistan.
“Given that the counterparty has consistently failed to fulfill the conditions that are precedent of closure and the changes in the business environment in Pakistan, this transaction is no longer in accordance with the company’s international development direction,” Shanghai Electric said in a statement last week.
Despite repeated obligations from successive governments to resolve the regulatory bottlenecks, progress remained evasive. The Shanghai Electric had initially agreed to acquire 18.3 billion shares in K-electric-together with a benefit-based bonus component of $ 270 million-but agreement stopped as needed for more government approvals and unclear requirements for compliance.
THAR KUL projects
During his visit, President Zardari thanked Shanghai Electric for his contributions to Pakistan’s energy sector and economic development, especially its role in job creation and infrastructure expansion.
He emphasized the strategic significance of the Thar-Kul Project and highlighted the potential for coal for gasing as a game of the Pakistan’s energy and agricultural sectors.
In a key development, the president was also witnessing the signing of a Memorandum of Understanding (MOU) for the creation of Pakistan’s first coal forbaging and fertilizer project based on Thar Coal. The agreement was signed between MFTC Coal Gasning & Manufacturing (PVT) LTD and SINO SINDH Resources (PVT) LTD / Shanghai Electric.
This initiative is not only expected to help reduce the dependence on imported fuels, but also strengthens agricultural productivity by supplying locally produced fertilizer. Shanghai Electric’s CEO expressed appreciation of the security measures delivered to the Chinese workforce in Pakistan.
President Zardari confirmed his government’s obligation to secure a safe and investment -friendly environment for all foreign companies operating in the country.
Founded in 1902, Shanghai Electric is one of China’s leading state -owned equipment producers with a global footprint in energy, power and industrial innovation.
