AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Pakistan’s power sector is bracing for a significant downturn, with earnings for key companies expected to fall sharply. AKD Securities Limited anticipates a 46% year-on-year decline in earnings for the AKD power universe during the fourth quarter of the fiscal year 2025, with an overall 40% decrease projected for the entire fiscal year.
This drop comes as the sector navigates a challenging economic landscape, compounded by an impending shift towards electric vehicles (EVs). The fourth quarter of fiscal year 2025 is notable for the official entry of BYD, a leading global EV manufacturer, into Pakistan’s domestic auto market.
In a bid to adapt to the evolving market dynamics, Nishat Power Limited’s (NPL) board has approved a significant equity investment of 2 billion Pakistani Rupees in NexGen Auto (Pvt) Ltd. This investment is a collaborative effort with China’s Chery Automobile to establish a foothold in the burgeoning EV market.
Despite the expected decline in earnings and a shrinking topline, both Hub Power Company (HUBC) and Nishat Power Limited (NPL) are projected to declare final cash dividends of 3.0 Pakistani Rupees per share. This move aims to reassure investors amidst the financial downturn.
The transition to electric vehicles is viewed as a crucial strategy for recovery, as power companies in Pakistan seek to diversify their operations and capture new growth opportunities.