In a shocking development, Saudi and Kuwaiti investors in K-Electric have launched a $2 billion international arbitration case against Pakistan, escalating a years-long dispute over regulatory intervention, unpaid government dues and the prolonged blocking of a $1.77 billion sale of the country’s largest private power utility. The arbitration was initiated on January 16, 2026, when London-based law firms Steptoe International (UK) LLP and Omnia Strategy LLP, acting for the investors, submitted a Notice of Arbitration under the OIC Investment Agreement and the UNCITRAL Arbitration Rules, formally naming the Islamic Republic of Pakistan as the respondent.
