The Hub Power Company (HUBC) is accelerating its diversification efforts as it looks to expand beyond traditional power generation into new industries including electric vehicles, mining, and energy logistics. Management reports a stronger financial outlook following government reforms, improved subsidy disbursements, and a steady recovery in payments, particularly for its coal-based plants. This renewed momentum comes at a time when HUBC aims to reposition itself as a key player in Pakistan’s evolving industrial and energy ecosystem.
During a recent meeting with Topline Securities, HUBC’s CEO Kamran Kamal and CFO Muhammad Saqib highlighted that the company’s financial position has strengthened notably due to consistent recoveries and an improved regulatory environment. The executives noted that lower interest rates and timely payments have eased liquidity challenges, while broader policy support for the energy sector has created room for expansion. They clarified that any potential resolution of circular debt or waivers on late payment surcharges related to CPEC-linked plants will be managed through government-to-government channels, with no negotiations currently in progress.
HUBC’s diversification strategy is multifaceted. Among the major initiatives under consideration is the establishment of an aluminium smelter at its Hub site, taking advantage of its extensive 1,100-acre industrial land and its existing power infrastructure. The company is also evaluating the potential for integrated bauxite mining, given Pakistan’s substantial natural reserves. According to management, the long-term vision is to develop value chain integration to support both domestic demand and exports. Another significant project under review involves the creation of a Single Point Mooring (SPM) facility for the import of petroleum products for PSO. HUBC plans to use its existing storage tanks and pipelines for this purpose and is considering forming a joint venture to execute the project efficiently.
In the electric vehicle sector, HUBC’s partnership with Chinese automaker BYD is gaining strong traction. The company has already established itself as the largest EV player in Pakistan, with local assembly of BYD’s Atto 3 expected to commence in the second half of 2026. HUBC is also preparing to launch a range of BYD vehicles, including a C-segment SUV, and is developing Pakistan’s first nationwide EV charging network spanning from Karachi to Peshawar. Management revealed that the market response has exceeded expectations, positioning the company to play a central role in driving EV adoption across the country. HUBC is also exploring export opportunities to right-hand drive markets and has attracted interest from international financiers to support this initiative.
In addition to its growing EV footprint, HUBC remains active in the energy and mining sectors. Its coal-based power plants are expected to declare their first dividends soon after achieving project completion, with payouts projected to surpass return-on-equity benchmarks. The company’s joint venture, Prime International, is preparing to participate in upcoming offshore exploration bidding rounds, signaling continued interest in the oil and gas sector. HUBC has also invested in Ark Metals, a junior mining company, and is reportedly considering participation in the PIA privatization process through a consortium. Management underscored HUBC’s consistent track record of growth through diversification—from coal power and energy exploration to electric mobility and mining—reflecting its strategic shift toward a broader, more resilient portfolio that aligns with Pakistan’s industrial and technological transformation.
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