President Asif Ali Zardari assured Shanghai Electric that Pakistan remains determined to solve all “amicable” problems. He invited the Chinese energy conglomerate to explore new investment opportunities in the country’s transmission and distribution infrastructure, state media reported on Monday.
The development took place during the visit of President Zardari to the headquarters of Shanghai Electric, just days after the end of its acquisition of $ 1.77 billion of $ 1.77 billion in K-Electric, citing the regulatory and exchange trade environments of Pakistan.
The president met President WU Lei and visited the company’s facilities in Shanghai, where he was informed of Shanghai Electric operations in Pakistan, including projects related to Thar coal, nuclear energy and the production of coal electricity.
The meeting occurred less than a week after the Shanghai Electric board of directors approved a resolution to withdraw from its attempt to acquire a participation of 66.4% in K-Electric de Kes Power Limited.
The agreement – originally signed in 2016 – has been stuck in limbo for almost nine years due to overlapping regulatory obstacles, legal disputes and economic volatility in Pakistan.
“Since the counterpart has not fulfilled the conditions for the closing of conditions and changes in the commercial environment in Pakistan, this transaction will no longer line up with the international orientation of business development,” said Shanghai Electric in a statement last week.
Despite the repeated commitments of successive governments to resolve regulatory bottlenecks, progress has remained elusive. Shanghai Electric had initially agreed to acquire 18.3 billion shares from K -Electric – as well as a yield component of $ 270 million – but the agreement was blocked following the need for multiple government approvals and unclear compliance requirements.
Thar coal projects
During his visit, President Zardari thanked Shanghai Electric for his contributions to the energy and economic development sector of Pakistan, in particular his role in the creation of jobs and the expansion of infrastructure.
He highlighted the strategic importance of the Thar coal project and stressed the potential for the gas classwarlet as a game changer for the Pakistan energy and agriculture sectors.
In a key development, the president also witnessed the signing of a memorandum of understanding (MOU) for the creation of the first gasification and coal fertilizer project of Pakistan based on Thar coal. The agreement was signed between MFTC Coal Gasification & Manufacturing (PVT) LTD and Sino Sindh Resources (PVT) LTD / Shanghai Electric.
This initiative should not only help reduce dependence on imported fuels, but also strengthen agricultural productivity by providing locally produced fertilizers. The CEO of Shanghai Electric expressed its appreciation for the security measures provided in Chinese labor in Pakistan.
President Zardari has reaffirmed his government’s commitment to ensure a secure environment and adapted to investments for all foreign companies operating in the country.
Founded in 1902, Shanghai Electric is one of the main manufacturers of Chinese state equipment, with a global imprint in energy, energy and industrial innovation.
