KE’s Financial Best Practices Upheld in Federal Tax Ombudsman’s

K-Electric (KE), Pakistan’s premier power distribution company, has welcomed the recent decision by the Federal Tax Ombudsman (FTO) affirming the company’s full compliance with prescribed laws on sales tax implementation.

The FTO’s decision reaffirms KE’s position as the only power distribution company in Pakistan that has proactively ensured the correct tax treatment by charging and depositing sales tax and income tax on gross electricity supply, as per the prescribed laws.

FTO’s Inquiry on Tax Treatment Discrepancies

Earlier this week, the FTO raised concerns regarding the inconsistent taxation treatment among different power distribution companies (DISCOs) in Pakistan. Specifically, the issue revolved around how K-Electric and XWDISCOS applied taxes on net metering customers, which resulted in potential revenue losses for the Government of Pakistan.

Following an in-depth inquiry, the FTO directed all 11 state-owned DISCOs to align their taxation practices with KE’s approach, ensuring uniform compliance with the regulatory framework. This move is expected to enhance revenue collection, reduce irregularities, and create a level playing field across the power sector.

KE’s Financial Leadership and Governance Standards

Commenting on the FTO’s ruling, Muhammad Aamir Ghaziani, Chief Financial Officer of K-Electric, stated:

“This decision reinforces KE’s commitment to upholding the highest financial and governance standards in all areas of our operations. Transparency, regulatory compliance, and robust financial controls are at the core of KE’s practices, and we are pleased that the FTO’s review validates our approach. As a responsible corporate entity, we remain dedicated to following all applicable laws and ensuring that our financial management aligns with national and international best practices.”

Investment and Operational Excellence

Since privatization, KE has pursued an aggressive investment strategy, injecting approximately USD 4.4 billion across the power value chain.

• Improved Customer Service: KE has implemented state-of-the-art digital solutions, ensuring a seamless customer experience.
• Renewable Energy Expansion: KE is actively investing in sustainable energy projects, further strengthening Karachi’s power landscape.

KE remains steadfast in its mission to enrich customer experience through operational excellence and transparent governance.

Furthermore, KE is continuously working to enhance customer-centric services, including:

• Smart Metering Initiatives to enable real-time electricity usage tracking.
• Digitized Billing Systems for ease of payment and transparency.
• Customer Engagement Programs aimed at addressing consumer grievances effectively.
• Grid Modernization Projects to enhance power reliability and stability.