He added the government injected Rs 108 billion in the KESC during the last three years which could have been spent on social sector projects such as education, health and infrastructure.
The Prime Minister noted that the company was causing about Rs 15 billion losses to the government of Pakistan for the last many years.
He hoped that now the KESC consumers would have the benefit of uninterrupted supply of electricity of right voltage as a result of committed professional management that is certain to be more efficient and responsive to consumers' demand.
The new investor would also inject additional investment that is required for upgrading the system. The meeting was informed that Nepra approves tariff for power sector entities irrespective of whether these were run by the public or the private sector.
Nepra has already approved the tariff formula for the KESC for a period of seven years. The tariff formula also envisages reduction of tariff if the company starts, and there is every likelihood for that, making profits beyond a certain level of profit.
The KESC employees on contract will get an increase of 20 percent in their salaries. It was noted that the company is not overstaffed, as such no employee is likely to be laid off by the new management even after one year.
The employees will get an additional benefit of 10 percent shares of the KESC and re-train the workforce.
The trade union activities, which had been suspended since long, would be allowed to resume after six months of transfer of management to the new owner.
As a matter of fact no employees' layoff was done in any of the 18 units privatised during the last three years, the meeting was informed.
Federal minister for privatisation and investment Dr Abdul Hafeez Shaikh, minister for water and power Liaquat Ali Jatoi, the governor of State Bank of Pakistan, the chairman of Board of Investment and other senior officials of the ministries concerned attended the meeting.
Kanooz Al-Watan for Project Consortium, Saudi Arabia, shall pay Rs 15.85 billion within one month after the issuance of Letter of Acceptance (LOA), which is being issued. In addition, the new owner will inject Rs 4.3 billion in the form of preference shares.
It may be pertinent to mention that the new owner would not be allowed to transfer the ownership/management to any other entity without prior consent of the government of Pakistan and Nepra.
The government of Pakistan will retain a minimum 26 percent stake in the KESC for the time being to ensure commitment as a measure of comfort to the prospective buyer of the utility.