PACRA Assigns Initial Ratings to DHA Energy Supply Company (Pvt.) Limited.

The ratings are supported by the strong and stable ultimate parentage of DHA Karachi in DHA Energy Supply Company (Pvt.) Limited (DESCO or 'the Company'), a special purpose vehicle established to develop and operate an independent electricity distribution and supply network for DHA City (DHAC), a flagship residential and commercial development of DHA Karachi. Notably positioned, DESCO is poised to become the third private entity in Pakistan to be granted a distribution license for a housing society, following a few others already operating under this category. Although not yet operational, the Company has applied to NEPRA for a 20-year distribution license, alongside supply license and is currently undertaking installation of its distribution infrastructure. The initiative aligns with the broader energy distribution landscape in Pakistan, which is predominantly managed by public sector DISCOs and faces systemic inefficiencies, including high transmission and distribution losses, aging infrastructure, and weak recovery mechanisms. Within this context, DESCO’s entry represents a progressive step towards diversifying the sector through embedded networks and specialized models for urban developments. The Company has formalized a power procurement arrangement with Lucky Cement for up to 6 MW and intends to secure additional supply from nearby generation sources. Operational readiness is supported through planned transfer of electrical infrastructure and machinery worth PKR 3.8bln, along with a related-party loan of PKR 6.070mln—both demonstrating tangible support from the sponsor. The Company also complies with NEPRA’s technical and solvency benchmarks and intends to implement a sound theft detection and penalty mechanism in accordance with CSM-21 regulations.
Comfort is drawn from the explicit written commitments provided by the sponsor, which were submitted as part of the documentation to NEPRA for the supply and distribution license. The ratings remain dependent on the timely receipt of regulatory approvals, continued sponsor backing through operationalization—considered critical to the Company's financial risk profile—effective coordination among key stakeholders, and the uninterrupted availability of electricity to end-users. Any delays in project milestones or regulatory challenges may impact the ratings going forward.

About the Entity
DHA Energy Supply Company (Private) Limited (DESCO) was incorporated on March 2, 2017, as a private limited Company, headquartered in DHA Karachi. DESCO was set up to develop and operate an electricity supply and distribution network tailored to the energy demands of DHA City . The Company aims to promote efficient and sustainable energy usage, particularly in urban and residential areas. Currently, DESCO is not operational and is awaiting regulatory approval from NEPRA for its distribution license to serve DHA City. The Company is led by Chief Executive Officer Brig. Sohail Imtiaz and supported by a seasoned management team, including Chief Financial Officer Mr. Haseeb Hafeez Uddeen, Col Muhammad Shabbar Ali Saeed (Retd) and Mr. Faisal Malik both overseeing operational matters. All are experienced professionals with demonstrated strengths in leadership and financial management.