Shareholders of Ghani Chemical Industries Limited (GCIL) have approved a major investment plan worth Chemical Rs. 1.86 Billion to support a gas mitigation and energy production project. The investment will be made in the associated company, GHG Emissions Mitigation Limited (GEM).
The approval was granted during GCIL’s Extraordinary General Meeting held on June 2, 2026. The decision follows resolutions submitted to the Pakistan Stock Exchange and marks an important step in the company’s long-term energy and environmental strategy.
Under the approved plan, GCIL will subscribe to 186.298 million right shares of GEM. The shares will be acquired at a face value of Rs. 10 each. This will result in a potential Chemical Rs. 1.86 Billion investment in the associated company.
Shareholders also authorized the company’s chief executive officer, executive director, and company secretary to complete all necessary procedures related to the investment. These officials will oversee the execution of the approved transaction and ensure compliance with legal and corporate requirements.
The investment is intended to support GEM’s gas mitigation and energy production facility. The project is being developed near the Sachal Gas Processing Complex. Company officials believe the initiative will contribute to improved energy production while addressing gas emission challenges.
In addition to approving the investment, shareholders passed another important resolution. They approved a Sponsor Support Agreement in favor of financing institutions led by Habib Bank Limited. The agreement relates to financial facilities arranged for GEM’s project development.
According to the approved resolution, the financing package includes a letter of credit facility of up to $38 million. It also includes a funded facility of up to PKR 14.4 billion. These resources will help support the construction and operation of the planned energy facility.
The approved Chemical Rs. 1.86 Billion investment forms part of GCIL’s commitment to the project. Under the Sponsor Support Agreement, the company will provide support based on its shareholding in GEM. This may include contributions toward equity requirements, funding costs, debt service reserves, and other obligations required by project financiers.
The latest approval highlights GCIL’s focus on supporting energy infrastructure and emission reduction initiatives. Industry observers believe the investment could strengthen the company’s role in Pakistan’s industrial and energy sectors.
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As project development moves forward, stakeholders will closely monitor the progress of the facility and its potential contribution to energy production and environmental sustainability.
