Sindh

KE agrees to pay Sindh Rs9b electricity duty

Demands govt to pay bills timely or face power disconnections like any other consumer

Our Correspondent July 24, 2025 1 min read

Additional concerns were raised over capacity payments to K-Electric’s power plants, projected to cost over Rs 82b. PHOTO: FILE

KARACHI:

The K-Electric (KE) after several years of delay has started payments of electricity duty amounting to Rs32 billion, it has collected from consumers through monthly bills, to the Sindh government.

As per the agreement, the power utility has agreed to pay Rs1.25 billion to the provincial government in two installments.

This move is part of a broader agreement under which KE has committed to pay Rs9.142 billion out of a total outstanding amount exceeding Rs32 billion. A payment schedule has also been issued.

According to the agreed timeline, the power utility will pay Rs4.258 billion to the Sindh government by September 2025.

Additionally, the K-Electric will now be required to regularly remit the electricity duty it collects from consumers through monthly bills.

The issue of non-payment of electricity duty was taken up by the Public Accounts Committee (PAC).

Meanwhile, the Rs25 billion dues between KE and the Karachi Water and Sewerage Board remain unresolved. K-Electric has warned government departments of potential disconnection if bills are not paid on time.

The power utility in its letter to the secretary of the Sindh Energy Department referred to the discussion between KE team and PAC members on June 31, during which payment with respect to Electricity Duty (ED) was deliberated upon.

As agreed, reconciled electricity consumption dues of the Karachi Water and Sewerage Corporation (KWSC) will be held for adjustment against ED accumulated up to August 2024 and the excess amount of ED for the said period shall be paid by KE in line with the agreed installments as reflected in the schedule.

Furthermore, KE will also deposit the respective ED amount for the period from September 2024 to September 2025, no later than 30th September 2025, into the respective Government Treasury. Moreover, it was also discussed that payment to KE for electricity dues by Sindh government and its various departments should also be paid on timely basis failing which, KE would be at liberty to take appropriate action including, but not limited to, disconnection of the respective electricity connections albeit in accordance with law.