Chinese power group Shanghai Electric has announced plans to invest US$9bn to overhaul electricity infrastructures in Karachi in Pakistan. The company plans to invest an average US$700m per year until 2030 to increase the capacity of the distribution network operated by its subsidiary K-Electric, improve cabling and reduce non-collection by replacing aerial grids with underground lines; widespread electricity theft and other losses are estimated to cost US$3.2bn/year to the city.
In November 2016, the company entered into a definitive agreement with Abraaj Group (United Arab Emirates) for the acquisition of Abraaj's 66.4% interest in K-Electric, a power generation and distribution company in Pakistan, for US$1.77bn. K-Electric was set up in 1913 as a public-sector company and was sold to Aljomaih Group (Saudi Arabia) in 2005, who sold it to the UAE’s Abraaj Capital in 2009. Since that date, the company has added 1 GW of power capacity (it now operates 2.3 GW of power capacity) and reduced the average T&D losses from 39% in 2009 to 23% in 2015. K-Electric operates the largest power transmission and distribution network in Pakistan, delivering power to 2.2 million customers in the Karachi area.