After years of delay, Karachi Electric (KE) has finally started clearing its dues to the Sindh government, initially depositing over Rs1.25 billion in two installments. This development marks a significant step toward restoring financial coordination between the Sindh government and KE.
According to details, both parties had agreed on outstanding dues exceeding Rs32 billion under the head of electricity duty. Out of this, KE consented to pay Rs 9.142 billion. A formal payment schedule has been issued under which an additional Rs4.258 billion will be paid to the Sindh government by September 2025.
A key clause of the agreement binds KE to regularly transfer the electricity duty it collects from consumers through electricity bills to the Sindh government in installments. In the past, the issue of non-payment of this amount had been raised multiple times in the Public Accounts Committee (PAC).
However, another significant matter remains unresolved, nearly Rs25 billion in dues between KE and the Karachi Water and Sewerage Board, for which no final agreement has yet been reached between the two entities.
This progress not only indicates a move toward financial discipline but also opens new avenues of cooperation between the provincial government and the energy provider.
