Hub Power Company Limited (HUBCO), Pakistan’s largest independent power producer, is broadening its business focus beyond traditional power generation. The company is now planning to invest in electric vehicles (EVs), mining, and energy infrastructure as part of its long-term diversification strategy.
According to reports from recent meetings with brokerage houses, including Topline Securities and Arif Habib Limited, HUBCO’s Chief Executive Officer Kamran Kamal and Chief Financial Officer Muhammad Saqib discussed the company’s operational performance, dividend plans, and future roadmap.
The HUBCO management shared that while Pakistan’s circular debt challenge persists, the company has experienced improved recoveries, particularly for coal-based power plants. This improvement was supported by timely subsidy releases and lower interest rates, which helped reduce financial costs.
HUBCO officials also said they had no update on the waiver of the Late Payment Surcharge (LPS) on CPEC-related projects, noting that any progress on this matter would depend on discussions at the Joint Cooperation Committee (JCC) level between Pakistan and China.
The company expects both its coal-based subsidiaries, ThalNova and Thar Energy Limited (TEL), to achieve project completion within the current quarter. Once operational, both companies are expected to declare dividends, with the first payment projected to exceed their return-on-equity (ROE) targets. Unlike CPHGC, which pays dividends annually, HUBCO anticipates that TEL and ThalNova may issue payments twice a year.
HUBCO’s shift toward EVs, mining, and infrastructure signals its intention to play a key role in Pakistan’s broader energy transition. With improved financial health, reduced costs, and strategic diversification, HUBCO appears well-positioned to strengthen its portfolio and drive sustainable growth across multiple sectors.
The company’s focus on new opportunities highlights its long-term vision to expand its footprint beyond the power sector while maintaining profitability and operational excellence.
In other related news also read Pakistan and Russia Sign Agreement to Revive Steel Mills
