‘KE Retail Sukuk' launched
The pre-IPO phase of PKR 1 billion, which was specifically designed for KE's industrial and large commercial consumers, as well as high-net-worth individuals, has already been completed.
The IPO round will now open on August 4 for individuals to invest from all across Pakistan, including KE's residential and commercial consumers. Currently, the IPO is operating in a blackout phase whereby only individuals are permitted to invest. Post 18th August 2025, IPO will be open to all kinds of investors including asset management companies.
KE to offer Rs3bn Sukuk through public subscription
This innovative financial product marks a major milestone in Pakistan's corporate Sukuk landscape and aligns with the vision of the Securities and Exchange Commission of Pakistan (SECP) and Pakistan Stock Exchange (PSX) for promoting secondary capital markets.
Sharing insights into KE's strong history in the debt capital markets, Muhammad Aamir Ghaziani, CFO, K- Electric, said: 'K-Electric has been a pioneer in Sukuk Issuances by a Corporate Issuer in Pakistan. In 2014, the company successfully issued PKR 6 billion in KE AZM Certificates, which were rated, listed, and secured Shirkat-ul-Milk Sukuks. KE also issued the largest listed long term Sukuk of PKR 25 billion in 2020. Since January 2022, KE has issued 33 short-term privately placed Shirkat-ul-Aqd Sukuks to raise financing for working capital requirements. This new first ever short-term retail Sukuk further reinforces KE's leadership in financial innovation and capital market engagement.'
The structure and compliance of the KE Retail Sukuk have been carefully reviewed and approved by three separate Shariah Boards which include HBL Shariah Board, ASAS Shariah Advisory Services and Mufti Ali Asghar. These Shariah Advisors have played a key role in ensuring that the Sukuk meets Shariah guidelines, reflecting KE's commitment to ethical and interest-free financial solutions.
Aamir further elaborated on the purpose of this launch, saying, 'The KE Retail Sukuk is structured to provide an attractive investment opportunity for individuals looking for high returns and tax advantages in debt capital markets. The Sukuk also features a unique bill adjustment option against Sukuk monthly profits for its Residential and Commercial consumers. The Sukuk via its Shirkat-ul-Aqd Islamic structure allows investors to directly participate in KE's core business operations related to electricity provision.'
KE remains committed to financial innovation and strengthening Pakistan's capital markets while ensuring continued investment in Karachi's power infrastructure. Investors will receive their Sukuk profit through bank transfers, unless they opt for profit adjustment, making the process simple and convenient.
The corporate Sukuk market in Pakistan remains largely dominated by privately placed instruments, with corporate Sukuk issuances totalling only PKR 153 billion, representing 9 percent of the overall market. In contrast, sovereign Sukuk issues amount to PKR 1.7 trillion, or 91 percent of the market. The introduction of the KE Retail Sukuk aims to encourage broader participation in the debt capital markets, offering a new avenue for the investors.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
14 hours ago
- Business Recorder
K-IV project: governor says Centre has already released Rs20bn
KARACHI: Governor Sindh Muhammad Kamran Khan Tessori has announced that the federal government had already released Rs 20 billion out of the Rs 40 billion requested for Karachi's development, to be executed through elected representatives. He also proposed a meeting at Governor House with Chamber representatives to discuss the K-IV project and explore the possibility of transferring its ownership to the business community for expedited execution. Governor, who graced the closing ceremony of the 20th edition of the iconic 'My Karachi – Oasis of Harmony' Exhibition, organized by the Karachi Chamber of Commerce & Industry (KCCI), has praised KCCI for organizing the event in a vibrant and engaging manner. Emphasizing the need for secure infrastructure and access to basic services, he stressed that both federal and provincial governments must work closely to address Karachi's genuine challenges. He urged the business community to collaborate with his office and legislators for shaping strategic industrial and infrastructure development initiatives. Governor Tessori further revealed plans to issue a recommendation letter for a prestigious civil award to Chairman Businessmen Group (BMG) Zubair Motiwala in recognition of his unmatched contributions to Karachi's business ecosystem. At the inauguration ceremony, Chief Minister Sindh Syed Murad Ali Shah lauded the Karachi Chamber for successfully staging the 20th edition of My Karachi Exhibition and reiterated the Sindh Government's firm support for the business community. He announced the launch of Sindh's Independence Day celebrations under the theme 'Maarka-e-Haq'—symbolizing Pakistan's continuing struggle for justice, sovereignty, and unity. Chairman BMG Zubair Motiwala shared that the 21st My Karachi would also promise greater international participation and enhanced features for visitors. He informed that this year's edition saw participation from 7 consulates and over 20 multinational companies, which showcased a broad range of products and services. 'Exhibitors, visitors and people from different walks of life have been advising KCCI to hold this grand exhibition twice a year which is testament to its growing impact and popularity,' he stated. Appreciating the Sindh government's support, Motiwala emphasized the need for swift resolution of lingering challenges, especially the shortage of water and gas faced by industries, and called for completion of the K-IV project at the earliest. President KCCI Muhammad Jawed Bilwani extended heartfelt gratitude to all stakeholders and the media for their unwavering support. He congratulated Chairman BMG Zubair Motiwala, Chairman Special Committee Muhammad Idrees, and KCCI's Managing Committee for organizing a memorable and impactful event. He especially praised the participation of women entrepreneurs and public welfare institutions who were provided subsidized or complimentary stalls. President Bilwani reiterated the urgent need for a modern, provincial-level Expo Center in Karachi and highlighted the city's dire infrastructure woes, including poor roads, drainage, traffic, encroachments, and rising street crime. He stressed on the Safe City Project and improved surveillance to ensure a secure environment conducive to business and investment. He also underlined the imbalance in gas and water distribution, demanding Sindh's due share and questioning the justification behind high water tariffs for Karachi, the country's largest tax-contributing city. From cultural shows, fireworks, and musical performances to economic dialogue and international participation, the 20th My Karachi Exhibition truly lived up to its legacy of being more than just a trade show, it was a celebration of Karachi's soul. It reaffirmed the city's resilience, vibrancy, and critical role in Pakistan's economy. The event not only offered affordable shopping and family entertainment but also served as a platform for strategic dialogue between government, business leaders, and foreign missions. The Karachi Chamber remains committed to further enhancing the scope and stature of My Karachi Exhibition in the years ahead, and to continue serving as the collective voice of the city's business community. The 20th edition of the iconic 'My Karachi – Oasis of Harmony' Exhibition, organized by the Karachi Chamber of Commerce & Industry (KCCI), concluded at the Karachi Expo Center with resounding success, celebrating Karachi's entrepreneurial energy, cultural diversity, and untapped economic potential. Over three vibrant days, the Expo Center became a melting pot of commerce, culture, diplomacy, and innovation, attracting nearly 800,000 visitors and showcasing over 350 stalls by local and international exhibitors. Copyright Business Recorder, 2025
Business Recorder
15 hours ago
- Business Recorder
Beyond flags and fireworks: unfinished task of economic independence
As Pakistan marks its 78th Independence Day, we are called to celebrate not only the birth of a sovereign state but also to reflect, honestly and urgently, on the unfinished business of our independence: economic freedom. For while flags will fly and anthems will rise this August 14th, the sobering reality remains that true independence continues to elude us — not for want of patriotism or potential, but for lack of economic self-reliance, policy clarity, and structural reform. Today, the average Pakistani citizen is burdened under the weight of rising costs, stunted wages, and dwindling opportunities. Our economy continues to rely heavily on external debt, concessional aid, and remittance-fuelled consumption. The vision of an independent, self-sustaining Pakistan — one that was so passionately articulated by Quaid-e-Azam — remains hostage to our inability to transform political will into bold economic choices. Nowhere is our economic entrapment more obvious than in our energy sector. Pakistan has among the highest electricity tariffs in the region — averaging around PKR 50 per unit for residential consumers as of mid-2025 — largely due to capacity payments, inefficiencies in transmission, and the perennial monster of circular debt, which has ballooned to nearly PKR 2.4 trillion. In the petroleum sector too, a distorted pricing mechanism, excessive taxes, systemic leakages and reliance on expensive imported fuel have distorted both consumption and investment decisions. Our taxation regime is similarly punitive and misaligned. Over 60 percent of tax revenue is collected through indirect means, disproportionately impacting the lower and middle classes, while leaving large segments of the elite sectors under-taxed. Agriculture, real estate, and wholesale and retail trade — which together contribute over 35 percent of GDP — continue to largely operate outside the documented economy. It is no surprise then that both local entrepreneurs and foreign investors remain wary of committing capital in a system so burdened by policy uncertainty and inequity. Amidst this stagnation, however, ordinary Pakistanis — both households and businesses — are quietly taking matters into their own hands. Solar panel imports surged to over USD 1.4 billion in FY24 alone, a clear signal that grid defection is no longer a future risk but a present-day reality. Entire housing societies are moving off-grid, factories are turning to hybrid solar-wind setups, and a quiet revolution in distributed energy is already underway. Yet policy continues to lag. We persist in funnelling scarce public resources into subsidizing a broken grid instead of embracing deregulation. Our energy strategies remain locked in supply-side interventions — more power plants, messed up LNG — while the real opportunity lies in enabling open access, competitive retail supply, and genuine consumer choice. Without a massive deregulation drive, we risk ending up with stranded assets and an obsolete grid infrastructure, all while consumers increasingly opt out of the system altogether. The establishment of the Special Investment Facilitation Council (SIFC) has created a unique opportunity — perhaps the most credible institutional innovation in decades — to drive cross-sectoral economic reform through a whole-of-the-government approach. It has brought together civilian ministries, provincial governments, and the military in an unprecedented framework aimed at facilitating investment and cutting through bureaucratic red tape. But institutions, no matter how robust, are only as effective as the political choices that back them. If there was ever a moment to take politically difficult yet economically necessary decisions — whether in power pricing, SOE divestiture, or tax reform — it is now. We must act while there is alignment at the top and a rare confluence of national interest and political pragmatism. As global supply chains diversify and capital seeks new destinations offering both stability and return, Pakistan cannot afford to hesitate. Geopolitically, the tide may finally be turning in our favour. The evolving contours of US trade policy — particularly in a potential post-Trump tariff recalibration — present Pakistan with an opening to expand its exports. With India's trade relationship with the US occasionally strained, and Bangladesh approaching graduation from the Generalized System of Preferences (GSP), Pakistan's textile sector in particular could gain significant ground if supported by a coherent government-to-government and B2B engagement strategy. Pakistan's textile exports to the US crossed USD 5.1 billion in FY24 — a respectable figure, yet still far below our potential. For the fiscal year ending June 2025, exports to the US further rose to around USD 6.03 billion — a 10.7 percent year-on-year increase. If we harmonize the energies of private exporters and government facilitators — particularly by improving compliance with ESG standards, traceability, and labour practices — we could aspire to double this figure over the medium term. Likewise, our IT and Business Process Outsourcing (BPO) sectors, growing at 15 percent annually, need strategic policy support to capture the expanding demand for nearshore digital services in North America. The real challenge, as always, lies in execution. We know what needs to be done: broaden the tax base, deregulate energy, divest loss-making SOEs, digitize governance, and bet on competitive sectors. What we lack is not diagnosis but daring — the courage to prioritize long-term gain over short-term optics, to build national consensus beyond partisanship, and to tell the people the truth: that there is no prosperity without reform, no dignity without documentation, and no independence without economic resilience. We cannot afford to waste another decade in denial. Pakistan's median age is 20.6 years. This generation is connected, conscious, and impatient. They will not be pacified with slogans. They want results — in employment, in energy bills, in upward mobility. If we fail to deliver, we risk a deeper crisis of confidence in the state and its institutions. But if we succeed — if we seize this moment, reform boldly, and act together — we can finally earn the economic independence we have been chasing since 1947. We can become not just a nuclear power, but a functional economy. Not just a strategic location, but a strategic supplier. Not just a state with borders, but a state with purpose. On this Independence Day, let us not merely commemorate our freedom — let us commit to completing it. Copyright Business Recorder, 2025
Business Recorder
16 hours ago
- Business Recorder
OMC sales – a temporary pause?
Pakistan's oil marketing sector started FY26 on a mixed note, with July 2025 petroleum product sales totalling 1.22 million tons. This represented a modest 2 percent increase compared to the same month last year but a steep 22 percent drop from June 2025. The figures highlight how the sector is grappling with both temporary disruptions and longer-term structural changes in how fuel is consumed. Petrol demand reached 0.61 million tons, up 4 percent year-on-year, thanks to higher automobile sales and tighter control on smuggled Iranian fuel. Yet, volumes fell 16 percent from June as heavy monsoon rains and flooding disrupted mobility, and a sharp price increase of PKR 13–14 per litre weighed on consumer sentiment and discretionary driving. High-speed diesel (HSD) followed a similar path. Sales climbed 9 percent year-on-year to 0.51 million tons, supported by a rebound in transport and industrial activity and better enforcement against fuel smuggling. However, demand dipped 18 percent month-on-month because the agricultural Kharif sowing season had ended, and prices jumped by PKR 20–22 per litre, putting pressure on freight and farm operations alike. Furnace oil sales, meanwhile, slumped to a historic low of only 15,000 tons—a staggering 80 percent year-on-year and 88 percent month-on-month drop. The decline highlights the ongoing structural shift away from furnace oil-based power generation, a trend accelerated by the government's imposition of a Rs77 per litre Petroleum Development Levy that made furnace oil-fired power generation prohibitively expensive. Part of the month-on-month drop can also be traced back to pre-buying in June, when many bulk consumers stocked up in anticipation of July's price hikes. This temporary adjustment, combined with severe flooding that slowed transportation and industrial activity, amplified the shortfall. Even so, there are signs of resilience. Excluding furnace oil, sales were up 8 percent year-on-year, pointing to a gradual recovery in underlying fuel demand, supported by improving economic activity and consistent government efforts to curb illicit fuel inflows. Looking ahead, there is cautious optimism for the rest of FY26. Global crude prices are expected to ease as OPEC+ continues to raise output, potentially softening domestic fuel prices in the months ahead. As the monsoon season recedes, normal mobility and agricultural activity are likely to support fuel consumption. Market expects overall petroleum product sales to grow between 7 and 10 percent this fiscal year, driven primarily by petrol and diesel demand, while furnace oil is set to remain on a structural downward path as Pakistan continues its shift toward more efficient and environmentally friendly energy sources.
