Engro Corporation, a significant player in Pakistan’s energy sector, has announced the sale of its coal and power generation business, marking a pivotal shift in the country’s energy landscape.
The company finalized the sale of its thermal unit to Liberty Power Holding Pvt. and a consortium of three partner companies for a staggering Rs34.75 billion, as reported by Bloomberg. This acquisition is touted as one of the largest in Pakistan’s history, signifying a significant development in the nation’s power sector.
Pakistan, a key participant in China’s Belt and Road Initiative (BRI) since 2013, has seen substantial investments in power generation as part of this initiative. Bloomberg noted that BRI investments totaling $25 billion have been instrumental in the establishment of power plants across the country, highlighting the pivotal role these investments have played in Pakistan’s energy infrastructure.
In addition to its contributions to the energy market, Engro has been a leading force in coal exploration in Pakistan, a country with massive coal reserves. The company’s efforts in this sector have been crucial for the nation’s energy security and diversification.
Commenting on the sale, Engro stated that divesting its power generation business will enable the company to “optimize capital and resource allocation,” suggesting a strategic move towards enhancing efficiency and focus.
Engro Corporation’s decision to sell its coal and power generation assets marks a significant transition in Pakistan’s energy industry, with implications for both the company’s strategic direction and the nation’s power sector development.
