K-Electric (KE) welcomes the Federal Tax Ombudsman’s (FTO) recent decision affirming the company’s full compliance with prescribed laws on sales tax implementation. This underscores KE’s adherence to best financial and business practices in line with regulatory requirements.
The decision also highlights KE as the power distribution company in Pakistan that had proactively implemented the correct tax treatment, charging and depositing the sales tax and income tax on gross electricity supply, as per the prescribed laws. This comes at a time when strengthening national revenue collection remains a priority.
Earlier this week, the FTO raised issue of different treatment by K-Electric and XWDISCOS regarding charging of the taxes on net metering customers resulting in revenue loss to the Govt. of Pakistan. Following an inquiry, the FTO directed all 11 state-owned DISCOs to align their taxation practices with KE’s approach, ensuring compliance with the regulatory framework.
Chief Financial Officer K-Electric, Muhammad Aamir Ghaziani, commented: “This decision reinforces KE’s commitment to upholding the highest financial and governance standards in all areas of our operations. Transparency, regulatory compliance, and robust financial controls are at the core of KE’s practices, and we are pleased that the FTO’s review validates our approach. As a responsible corporate entity, we remain dedicated to following all applicable laws and ensuring that our financial management aligns with national and international best practices.”
As a publicly listed company, KE operates under strict governance frameworks, with financial disclosures reviewed by independent auditors and regulatory bodies in accordance with PSX bylaws and global accounting standards. The company’s adherence to financial prudence has reinforced investor confidence, enabling investments of approximately USD4.4 billion across the power value chain since privatization.
As part of the company’s 7 years plan from 2024 – 2030, KE’s has already received an approval from the regulatory authority to invest further USD 2.0 billion across its transmission and distribution functions.
These targeted investments have positioned KE as the most improved distribution company in Pakistan, with significant reductions in Transmission & Distribution (T&D) losses and Aggregate Technical and Commercial (AT&C) losses. On the generation side, the utility has significantly improved the generation efficiency post privatization as well.
KE remains committed to enriching customer experience through operational excellence, regulatory compliance, transparency and driving sustainable growth for Karachi and Pakistan’s energy sector.
