DHA Energy Supply Company (Private) Limited (“DESCO” or “the Company”) was incorporated on March 2, 2017, in Pakistan as a Private Limited Company. It operates as a legal entity registered with the Securities and Exchange Commission of Pakistan (SECP) and has a registered office in 2-B, East Street, Phase 1, DHA Karachi.

DESCO has been established as a special purpose vehicle to develop and operate an independent electricity distribution and supply network for DHA City (DHAC)—a flagship residential and commercial project of DHA Karachi (DHAK), situated at KM-50 on Motorway M-9, Karachi. The Company is focused on meeting growing energy demands by developing and operating a dedicated electricity supply and distribution network. Its focus is on promoting efficient energy management and delivering sustainable power solutions tailored to the needs of urban and residential communities. To ensure reliable power connectivity within DHAC, DESCO is currently engaged in the installation of its distribution infrastructure. The Company is procuring electricity from Lucky Cement under a supply commitment, as well as from other nearby generators and has applied to NEPRA for a supply and distribution licenses for up to 10MW distribution project.

DESCO’s principal objective is the supply and distribution of energy. To this end, the Company undertakes the construction, ownership, management, operation, and maintenance of distribution infrastructure, including distribution lines, electrical circuits, transformers, and substations. Since the supply and distribution of electric power in Pakistan is a regulated activity, DESCO has submitted a petition to NEPRA for the grant of a Supply License. In parallel, the Company has applied for a Distribution License to enable the distribution of electric power within DHA City Karachi (DHAC). DESCO is currently awaiting NEPRA’s approval for the License, following which it will commence its operations.

DESCO is a wholly owned subsidiary of DHA Energy and Services (Private) Limited (The HOLDCO) which is owned by the Pakistan Defense Officers Housing Authority (DHA Karachi ), a statutory body responsible for managing residential and infrastructure development for defense personnel. This ownership structure ensures strategic alignment with DHA’s broader infrastructure and community development goals.

DHA Karachi  is a well-established and professionally managed entity with strong institutional backing and stable ownership. Its centralized governance structure, consistent administrative practices support long-term strategic planning and minimal ownership-related risks. With a proven track record of successfully developing and executing large-scale residential and commercial projects across major cities, DHA has earned a solid reputation for reliability, regulatory compliance, and timely project delivery.

DHA Pakistan exhibits strong business acumen through strategic planning, efficient resource management, and consistent project delivery. Its ability to respond to market needs, maintain financial discipline, and deliver high-quality developments has positioned it as a leading and trusted real estate entity in the country.

The financial strength of DHA, the sponsor, is considered robust, supported by its strong business profile, diversified operations, and institutional governance. This strength is evident from the transfer of basic distribution infrastructure valued at approximately PKR 3.8 billion to DESCO. Furthermore, the licensing documents submitted to NEPRA clearly state that DHA Energy Services Limited—the holding company and a wholly owned entity of DHA—will extend financial and operational support to DESCO as needed.

The Board of Directors of DESCO comprises seven experienced professionals, all members are the nominees from the sponsoring entities. Three Directors represent DHA City and  Four represent DHA Karachi. The Chief Executive Officer is also a member of the Board. This composition ensures balanced representation, strong institutional alignment, and effective oversight in line with the Company’s strategic goals.

The Board of DESCO is led by Mr. Sohail Imtiaz, who serves as the Chief Executive Officer of DESCO and is currently the Administrator of DHA City. The Board comprises experienced professionals contributing institutional knowledge and operational expertise. A prominent member of the Board, Mr. Faisal Imran Hussain Malik, is a Chartered Accountant (FCA) and CPA (Canada) with extensive experience in financial planning, corporate strategy, and the energy sector. Currently serving as the Chief Strategy and Finance Officer at DHA Karachi. Also, on the Baord is Mr. Faisal Malik who advises DESCO on regulatory and licensing matters, particularly in engagements with relevant authorities. Mr. Faisal Malik has 33 years of experience, including 12 years at K-Electric (KE), where he served as Regional Head in the Distribution division.

While no formal board committees have been established, the Directors of the Board of DESCO meet regularly with active participation from its members. These meetings provide a platform for discussion on key strategic, financial, and risk-related matters. The Board actively supports the management by offering oversight, guidance, and timely decision-making to ensure the Company's objectives are effectively achieved.

Rahman Sarfaraz Rahim Iqbal Rafiq, Chartered Accountants, a reputable and long-established audit and assurance firm in Pakistan, has issued an unqualified audit opinion on DESCO’s financial statements for the year ended June 30, 2024.

DESCO follows a structured organizational framework. The CEO, along with the Company Secretary and Chief Internal Auditor, reports directly to the Board. While the remaining departmental heads and team members report to the CEO.

The CEO of the Company is Brigadier Sohail Imtiaz.  Col Muhammad Shabbar Ali Saeed (Retd) and Mr. Faisal Malik oversees operational matters. The Chief Financial Officer (CFO) is Mr. Haseeb Hafeezuddeen, an MBA, CPA (USA) with 30 years of experience in finance and corporate management. Company Secretary is Mr. Saqib Ali, FCMA & CIA has 28 years of professional experience. All executives report directly to the CEO and are supported by competent and well-structured teams under their respective leadership.

The effectiveness of DESCO’s management is reflected in its structured approach and coordinated decision-making. The management team comprises experienced and qualified professionals who work in close coordination to ensure timely preparation and submission of filings, as well as obtaining necessary approvals from NEPRA and other relevant authorities. This collaborative approach has contributed to greater procedural efficiency. Once operations commence, the establishment of a formal management committee structure is expected to further enhance overall effectiveness and governance.

DESCO currently uses Peachtree Accounting Software, a basic solution by Sage, to support its daily financial activities. Upon the commencement of full operations, a formal and comprehensive Management Information System (MIS) expected to be established to strengthen oversight, enhance reporting, and improve overall efficiency.

DESCO maintains an adequate control environment with defined policies and procedures. The Company’s internal audit function performs regular reviews on financial, operational, and compliance controls.

As of FY24, Pakistan’s total installed power generation capacity stood at approximately 45,888 MW, while actual power generation declined slightly to 15,662 MW. This underutilization reflects persistent inefficiencies in the power sector, with average capacity factor falling to 34.1% from 34.4% in FY23. The electricity distribution sector in Pakistan is primarily dominated by public sector distribution companies (DISCOs), with approximately eleven entities operating across the country, including K-Electric. These entities operate under region-based monopolies, distributing electricity within their assigned jurisdictions. K-Electric (KE), the only privately owned and vertically integrated utility, is responsible for the generation, transmission, and distribution of power in Karachi and its surrounding areas. While these utilities manage considerable distribution capacities, the sector continues to grapple with structural inefficiencies. Common issues include high transmission and distribution (T&D) losses, aging infrastructure, weak recovery mechanisms, and service delivery gaps—particularly in high-density and rural areas. Although efforts are being made to improve governance and upgrade systems, progress remains gradual and uneven across regions. NEPRA plays a central role in regulating the sector, including tariff determination, licensing, and performance monitoring. In recent years, limited space has opened for private sector involvement, particularly through embedded distribution networks, special purpose vehicles for housing schemes, and captive or dedicated systems. These emerging models, though still in their early stages, represent a cautious but important step toward introducing competition and enhancing efficiency in the distribution landscape.

While Pakistan’s electricity distribution sector has traditionally been dominated by public sector DISCOs, a gradual shift is emerging with the entry of private entities into the space. This transition has been accelerated by a recent regulatory development, in which NEPRA revised K-Electric’s longstanding exclusive rights to distribute electricity in Karachi and its assigned territories. The change has opened the market for new entrants—such as DESCO—to operate in previously restricted areas under a competitive framework. DESCO is among a few notable private players, including the distribution setup at DHA EME Lahore, established to meet the localized electricity needs of specific communities through dedicated infrastructure and service delivery models. With its focused approach, DESCO is well-positioned to serve as a model for privately managed, community-centric electricity distribution, in line with the evolving regulatory landscape and market dynamics in Pakistan’s power sector.

DESCO is currently awaiting the issuance of its Supply and distribution license from NEPRA. Following the grant of the license, the Company will proceed to apply for tariff determination. As operations have not yet commenced, DESCO has not recognized any revenue to date.

Since operations have not yet commenced, DESCO has not generated any operating margins. However, interest income from savings accounts constitutes the Company’s current income and is reflected in its reported net margins.

DESCO’s long-term sustainability is anchored in its focused operating model, dedicated customer base, and the growing demand for reliable power supply within DHA City Karachi. As a purpose-built distribution company backed by a strong institutional sponsor, DESCO is positioned to serve a well-defined urban community with a predictable consumption pattern, reducing demand-side risk. The Company’s financial sustainability is expected to strengthen once commercial operations commence.

As the Company has not yet commenced operations, there is a minimal funds requirement which is met by its sponsors DHA City and DHA Karachi.  However, with the initiation of commercial activities, the need for working capital will emerge.

As the Company is not yet operational and has no commercial borrowings, its free cash flows primarily reflect investment income generated from savings accounts.

As of December 2024, DESCO’s leverage stood at 23%, compared to 24.3% in FY24, 27.7% in FY23, and 30.5% in FY22.