KARACHI, Dec 1: Privatization Minister Dr Abdul Hafeez Sheikh has expressed the confidence that Karachi’s lights will glow brighter than ever before after the successful completion of the privatization of Karachi Electric Supply Corporation (KESC). Speaking at a ceremony here on Thursday to mark the transfer of 73 per cent shares of KESC with management control to the consortium of Saudi investors’ group Al-Jumaih and Hasan Associates, the minister conceded the transaction to be a difficult one but thanked the government at the “top level” for support to make it a success.

Among those who attended the ceremony were Al-Jumaih group president Sheikh Abdul Aziz Jumaih, new KESC chief executive officer Frank Scherschmidt, Shan A Ashary, outgoing managing director Brigadier Tariq Sadozai, privatization secretary Tehseen Iqbal Khan, Farooq Hasan and Halim Siddiqui of Hasan Associates and Sindh Chief Minister Dr Arbab Rahim.

Dr Hafeez made a reference to the observations made in media on the ongoing privatization, particularly with reference to KESC, which according to him, amply manifested the freedom that media enjoyed in Pakistan.

He was confident that the new management would make KESC a public service utility and a profitable entity.

Sheikh Abdul Aziz of Al Jumaih on the occasion promised to make KESC a service organization that would be responsive as well as responsible.

Frank Scherschmidt in his speech hinted at upgrading and expansion of the KESC system and services in future.

Farooq Hasan of Hasan Associates made it clear on the new owners and managers that there was “absolutely no room for failure” and it had to be only success and nothing else.

He recalled that KESC was the first utility company to be registered under the Company Act, 1910 in 1913, which had started operations with a generation of 60 megawatt. Now KESC needs 2,500mw to serve a city of 15 million that contributes 20 per cent to the GDP and 60 per cent to the national exchequer.

“KESC’s share of Rs10 was sold at Rs350 in 1971,” he informed the audience to establish how profitable the utility was in the pre-nationalization era and further illustrated his point by saying that if this share worth was measured in terms of gold price it comes to Rs9,000 a share. KESC employees used to get six bonuses and there was no concept of power breakdown or power pilferage.