Who Owns HUBCO? The Dawood Group's Power Empire
Pakistan's first major IPP, who controls it today, and what it collects from the Pakistani consumer
By Asad Baig · Lahore · April 2026 · Approx. 4-min read
The short answer
HUBCO, Pakistan's first major independent power producer, is controlled by the Dawood Group. The Dawood Group acquired HUBCO from National Power International Holdings in 2012. Combined with Engro Corporation (also Dawood-controlled) and the Thar coal joint ventures, the group is now Pakistan's largest private power producer.
The longer answer involves how HUBCO became HUBCO, what it collects today, and why the 2021 circular debt settlement matters more than most Pakistanis realise.
The original deal
HUBCO, the Hub Power Company, was Pakistan's first major IPP. The plant is located near Karachi. Capacity 1,292 MW. Fuel furnace oil.
The plant was originally developed in the late 1980s under the predecessor framework that became the 1994 Power Policy. The projected capital cost in 1988 was approximately $1.2 billion. By financial close in 1995, the stated capital cost had risen to $1.766 billion, a 47 percent increase. I have written about this at The Capital Cost Trick.
The original sponsors included Hub Power International (a UK consortium) and various Pakistani financial institutions. Ownership shifted multiple times over the years before the 2012 Dawood Group acquisition consolidated control.
What the Dawood Group collected from HUBCO in FY2023-24
In the financial year 2023-24, HUBCO and KAPCO together received approximately Rs. 46 billion in capacity payments from the Pakistani government. In that same year, the two plants produced exactly zero units of electricity.
The figure was confirmed publicly by Gohar Ejaz, the former federal minister, in July 2024. He showed the data on television. Nobody disputed it.
This is what take-or-pay produces in practice. The plant is paid for its existence, not its output.
The 2021 circular debt settlement
In 2021, HUBCO alone received approximately Rs. 23.2 billion in the circular debt settlement, divided into cash, 5-year bonds, and 10-year bonds.
This matters because the bond portion converts current capacity payment obligations into future Pakistani sovereign debt. Future taxpayers will pay HUBCO bond obligations in 2031 and 2036. The Dawood Group has been paid not just from current revenues but from future bonded debt of the Pakistani state.
This is a feature of how the capacity payment system has evolved. When circular debt accumulates beyond manageable limits, the federal government issues bonds to settle portions of it. The bond issuances reduce the headline circular debt figure but transfer the obligation to general government revenues. The IPP receives a guaranteed asset (a government bond) in exchange for unpaid capacity charges. The taxpayer pays.
WHAT THE 2021 SETTLEMENT MEANS
HUBCO received Rs. 23.2 billion in cash and bonds in 2021. The bond portion will be paid by future Pakistani taxpayers, in 2031 and 2036, through general government revenues. The Dawood-Engro complex is being paid not just from current revenues but from future bonded debt of the Pakistani state.
What the broader Dawood power portfolio looks like
| Plant | Capacity | Fuel |
|---|---|---|
| Hub Power (HUBCO) | 1,292 MW | Furnace oil |
| HUBCO Narowal | 220 MW | Diesel / RFO |
| ThalNova Thar Coal | 330 MW | Thar coal |
| HUBCO Thar Coal | 330 MW | Thar coal |
| Engro Thar Coal | 660 MW | Thar coal |
| New Bong Escape Hydropower | 84 MW | Hydro |
| Tenaga Generasi Wind | 49.5 MW | Wind |
I have written about the broader Dawood story, including the family's history and how the empire was rebuilt after Bhutto-era nationalisation, at The Dawood Story: HUBCO, Engro, and the Thar Coal Plants.
What you should take away
Three things.
HUBCO is controlled by the Dawood Group. The 2012 acquisition consolidated control. The Dawood-Engro complex, of which HUBCO is the largest single asset, is Pakistan's largest private power producer.
HUBCO and KAPCO collected Rs. 46 billion in FY2023-24 for zero electricity. This is the most concrete documented illustration of how take-or-pay works at the level of specific plants.
The 2021 settlement converted capacity charges into future bond obligations. The Pakistani taxpayer will be paying HUBCO bond obligations in 2031 and 2036 from general government revenues, on top of the ongoing capacity charges that continue to be added to the circular debt.
Now you know who owns HUBCO. Pass it on.
Thank you for reading.
, Asad Baig, Lahore, April 2026
Frequently asked questions
Who owns HUBCO? HUBCO is controlled by the Dawood Group, which acquired it from National Power International Holdings in 2012. The Dawood Group, through Hub Power and associated companies (Engro, ThalNova), is now Pakistan's largest private power producer.
How much capacity does HUBCO have? The Hub Power complex has approximately 1,292 MW at the original Hub site, plus 220 MW at HUBCO Narowal, plus 330 MW at HUBCO Thar Coal. Combined HUBCO-branded capacity is approximately 1,842 MW.
What did HUBCO and KAPCO receive in FY2023-24? Approximately Rs. 46 billion combined in capacity payments, while generating zero units of electricity. Confirmed publicly by Gohar Ejaz, former federal minister, in July 2024.
Sources and notes
- Karachi Stock Exchange / PSX disclosures of HUBCO and Engro Corporation
- NEPRA tariff filings for HUBCO, KAPCO, Engro Thar Coal (nepra.org.pk)
- CPPA-G IPP lists (cppa.gov.pk)
- Gohar Ejaz public data release (July 2024)
- Power Sector Inquiry Report 2020 (ARY News mirror)
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Asad Baig