KE Cuts Power to Railways Over Unpaid Bills; Railways Cites Rs70 Billion in Dues

K-Electric

KARACHI: The power utility company, K-Electric (KE), disconnected electricity to Pakistan Railways (PR) on Tuesday over unpaid bills amounting to Rs430 million since May 2024, disrupting key operations, including the online ticketing and signal systems for 38 daily passenger trains from Karachi.

In its statement, KE stressed the unsustainability of continuing supply without payment and highlighted repeated defaults despite prior accommodations. “Notices and disconnections have been issued before, but undertakings by railway authorities to clear dues and pay monthly bills have been consistently dishonored,” KE stated. The utility warned that supply would remain indefinitely suspended until payments are received.

Railways Responds
Pakistan Railways countered by accusing KE of owing Rs70 billion in unpaid rent for installations on PR land over the past decade. Karachi Divisional Superintendent Muhammad Nasir Khalili claimed KE delays payments for grid stations, substations, and cables, accumulating over Rs1 billion in current dues alone. He warned that PR may halt bill payments if KE fails to clear its debts.

Operational and Financial Impact
The power suspension has caused significant disruptions:

The online ticketing system of PR Karachi Division is offline.
Delays in passenger and freight train schedules are expected.
Daily operations of 38 passenger trains have been disrupted, affecting approximately 35,000 passengers and causing a daily loss of Rs60 million for PR.
Khalili noted that PR has successfully recovered Rs926 million from other institutions, including SSGC, PTCL, and the Sindh government. However, KE’s delayed payments remain unresolved.

With both parties at an impasse, the dispute threatens to exacerbate operational challenges, highlighting the need for resolution to ensure uninterrupted services for thousands of daily commuters.

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