MOHAMMAD BILAL TAHIR
KARACHI: K-Electric (KE) has announced the launch of Pakistan’s first-ever retail listed short-term Islamic debt instrument, namely the KE Retail Sukuk.
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.
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.
