ISLAMABAD: President Asif Ali Zardari this week assured Chinese company Shanghai Electric of resolving all of its outstanding issues “amicably,” days after it terminated a $1.8 billion deal to acquire Pakistan’s K-Electric.
Shanghai Electric’s board of directors decided to terminate the deal to acquire the Pakistani power utility company on Sept. 9, citing Pakistan’s changing business conditions and K-Electric’s failure to meet conditions. The Chinese company was in talks to acquire the majority stake in KE since 2016, delayed due to regulatory approvals and liquidity constraints as a consequence of mounting circular debt plaguing the country’s power sector.
Zardari arrived in China last Friday for a ten-day official visit to the country, which comes on the heels of Prime Minister Shehbaz Sharif’s trip to China last week. The Pakistani president met Shanghai Electric’s Chairman Wu Lei at the company’s office in Shanghai.
He was accompanied by his daughter and First Lady Aseefa Bhutto Zardari and his son, former foreign minister Bilawal Bhutto Zardari.
“The President thanked him for the contribution of Shanghai Electric in meeting Pakistan’s energy needs, generating employment and supporting socio-economic development,” state broadcaster Radio Pakistan reported on Monday.
