Senior Saudi officials are unhappy with Pakistan’s delay in resolving the long-standing dispute over K-Electric’s ownership and governance. Muhammad Azfar Ahsan, Pakistan’s former Minister for Investment, has warned that this issue could damage Pakistan’s image as a reliable place for foreign investors.
Ahsan called this situation a “defining moment” for Pakistan’s investment credibility. He said that Saudi officials have clearly expressed their frustration, pointing out that the delay is harming investor trust. According to them, this ongoing issue raises Pakistan’s risk profile, makes it more expensive to do business, and could scare away future investors.
He questioned why investors would stay in a system that creates difficulties for them. While countries around the world are trying to attract investment, Pakistan is pushing investors away through slow policies, poor regulation, and a lack of trust.
Ahsan highlighted that the Al-Jomaih Group from Saudi Arabia invested over \$4 billion in K-Electric back in 2005 to improve Karachi’s power supply. Even after almost 20 years, they haven’t been able to take any profits out of Pakistan, despite following all legal rules. A further investment of \$2 billion is now at risk.
He urged Pakistani authorities to act quickly, warning that this delay could undo decades of positive diplomatic and economic relations with Saudi Arabia. He emphasized that Saudi Arabia is a key economic partner, especially under its Vision 2030 plan, which includes major global investments — with Pakistan as one of the key countries.
Ahsan praised Saudi patience but warned that it won’t last forever. He urged Pakistan to protect investor rights, ensure policy continuity, and remove exit barriers to rebuild trust.
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