ISLAMABAD: The Shahbaz Sharif government has decided to provide fresh relief to electricity consumers by reducing power tariffs through a new mechanism.
The decision follows the introduction of a “captive power levy,” imposed under the International Monetary Fund (IMF) programme. The government has now approved a plan to pass the benefit of this levy directly on to consumers.
According to officials, electricity users will receive relief every two months. The amount of relief may increase as the levy on captive power plants is raised in phases. A five percent levy has been imposed immediately, which will increase to 10 percent, then 15 percent by February 2026, and reach 20 percent by August 2026.
ALSO READ
Rawalpindi Ring Road project faces scrutiny over Rs53bn revised cost
The funds collected through the levy will be used to reduce electricity tariffs for all categories of consumers.
The authorities have warned that captive power plants failing to pay the levy will face action, including the suspension of gas or LNG supplies.
Under the approved plan, the government will also present an annual report to Parliament on how the levy money is used. This report will be submitted within three months after the end of each financial year.
Earlier, on February 1, 2025, the government had raised gas prices for captive power plants from Rs3,000 to Rs3,500 per MMBTU, a move that paved the way for the introduction of the captive power levy.
