Muhammad Azfar Ahsan, Pakistan’s former Minister for Investment, has issued a stark warning over the deteriorating situation surrounding Saudi Arabia’s Al-Jomaih Group and its stalled investment in K-Electric. Citing growing frustration from Riyadh, Ahsan urged the Government of Pakistan to swiftly resolve the issue before it jeopardises broader investor confidence and future foreign direct investment (FDI).
Azfar Ahsan’s call to action follows reports of a high-level meeting between Saudi Assistant Minister of Investment Ibrahim Al-Mubarak and Pakistan’s Ambassador in Riyadh, where Saudi officials conveyed strong dissatisfaction over Islamabad’s failure to address longstanding governance and shareholding concerns in K-Electric.
The Prime Minister’s Office had reportedly promised resolution within a month during a meeting in October 2024—a pledge that remains unfulfilled.
“Saudi investors have shown patience for years, but that patience is wearing thin,” said Azfar Ahsan. He pointed out that the Al-Jomaih Group, which entered Pakistan’s power sector in 2005, has yet to receive a single dollar in repatriated profits over nearly two decades, despite investing over $4 billion alongside other partners to upgrade Karachi’s power infrastructure.
The dispute has now escalated into a test case for Pakistan’s credibility on the global investment stage. Al-Mubarak reportedly warned that further delays would harm Pakistan’s investment reputation, increase risk ratings, elevate insurance costs, and depress projected returns. He noted that Al-Jomaih wields considerable influence within Saudi Arabia’s investment community and that negative experiences could influence future investment decisions.
Azfar Ahsan emphasised that the issue is not just about one investor, but about the message Pakistan sends to the global business community. “Continuing the status quo may cost heavily. Swift and credible action will serve as a green signal that Pakistan is open for business,” he said.
He also highlighted that despite Saudi Arabia’s pledged investment of $10 billion, progress on the $2.8 billion deals announced during the 2024 Saudi delegation visit has remained stalled. Meanwhile, 34 business-to-business memoranda of understanding (MoUs) signed between Pakistani and Saudi firms are reportedly being reconsidered.
While Deputy Prime Minister Ishaq Dar is said to be personally overseeing the matter, Saudi officials have made it clear that a concrete resolution must precede any upcoming ministerial visits to the Kingdom. Ahsan reiterated that the Al-Jomaih episode is a litmus test of Pakistan’s seriousness in protecting and retaining foreign investment.
“The world is watching,” he said, “and the time for action is now—not in months, but in days and hours.”
Interestingly, Mr Ahsan’s PR firm, Nutshell Communications, holds a public relations contract with K-Electric.