PACRA Maintains the Entity Ratings of National Grid Company of Pakistan Limited (formerly: National Transmission & Despatch Company Limited) | Rating Watch

The ratings reflect the strategic importance of the National Grid Company of Pakistan Limited (“the Company” or “NGC”) to the national power infrastructure, underpinned by its sovereign ownership—being dominantly held by the GoP. As the Country’s principal power transmission utility, NGC is mandated to develop, operate, and maintain an integrated transmission network of 220kV, 500kV, and higher voltage levels, facilitating evacuation of electricity from a total installed capacity exceeding 45,885 MW. During FY25, NGC executed multiple infrastructure projects aimed at optimizing system load and enhancing overall efficiency. The Company carries a low business risk profile due to its entrenched market position and strong technical expertise, and operates under a return-on-investment model, with its costs embedded in the tariff structure, ensuring full cost recovery. Following the expiry of its MYT in FY22, NGC submitted a revised tariff petition to NEPRA, supported by an approved investment plan, which is currently under review. In the absence of a new tariff determination, the company continues to recognize revenue based on the previously notified fixed tariff of PKR 235/kW/month. During FY25, NGC received 133,621 GWh and delivered 130,189 GWh, with T&T losses at 2.569%—well within NEPRA’s allowed limit of 2.639%, and reported revenue of PKR 53,076mln during 9MFY25 (9MFY24: PKR 52,435mln; FY24: PKR 71,402mln). Profit after tax improved primarily due to a decline in policy rates, which led to reduced finance costs. NGC’s moderate financial risk profile is supported by a sizable equity base and a sound capital structure, primarily consisting of GoP-relent foreign loans with minimal local commercial borrowings. The Company manages its working capital efficiently through internal cash generation and an offsetting mechanism for receivables and loan repayments, helping to mitigate circular debt exposure. Additionally, NGC is advancing its digital transformation through ERP implementation to enhance automation and internal controls.
A Rating Watch has been placed in view of the GoP’s plan to establish a Centralized Competitive Trading Bilateral Market, requiring the unbundling of NTDC into three entities: NGC, ISMO, and EIDMC. While the transition is ongoing, it is currently expected that NGC will retain the major revenue stream, supporting the maintenance of current ratings. The Rating Watch allows for close monitoring of the financial and operational impact, which will become clearer as the roles, assets, and obligations of each entity are fully defined and implemented.
The ratings remain sensitive to NGC’s ability to maintain a stable financial profile, complete ongoing and future transmission projects on time, and manage operational and sector-specific challenges. Approval of the revised Multi-Year Tariff is essential for long-term regulatory clarity and predictable cash flows. Timely resolution of outstanding BTA adjustments is also important for consistent financial reporting and sector coordination. NGC’s strategic role in the national transmission network—driven by operational efficiency, system reliability, and project execution—will remain a key rating driver.

About the Entity
National Grid Company of Pakistan Limited (formerly National Transmission and Despatch Company Limited) was incorporated as a public unlisted company on November 6, 1998, under the Companies Ordinance, 1984 (now the Companies Act, 2017), with its head office located in Lahore. The Company commenced commercial operations on March 1, 1999. It was granted a transmission license by the NEPRA in December 2002, to undertake electricity transmission across Pakistan for a period of thirty (30) years. Following the GoP’s decision to unbundle NTDC in 2023, the Company now operates under the name National Grid Company of Pakistan Limited (NGC) and is undergoing structural and functional reorganization. The Board of Directors was reconstituted in June 2025 and comprises experienced professionals from key public sector entities