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The National Assembly Standing Committee on Petroleum has approved the Off the Grid (Captive Power Plants) Levy Bill, 2025, clearing it for passage in the National Assembly. The bill aims to impose a levy on captive power plants and is part of Pakistan’s commitments under the IMF’s Extended Fund Facility.
Federal Minister for Petroleum gave a detailed briefing on the bill, explaining that it is an important step towards transitioning industries from captive power generation to the national electricity grid. He noted that although the phase-out of captive power plants had been under discussion for a long time, political and economic challenges had delayed its execution.
The Minister emphasized that connecting industries to the grid would help make use of the country’s surplus electricity, boost efficiency in the power sector, and ease economic pressures. He assured the committee that the bill was prepared after a thorough consultation process, and protections for the industrial sector had been included to prevent disruption to their operations.
He also acknowledged the role of the Speaker of the National Assembly in helping to steer the consultation process. Highlighting high electricity prices as a key concern, the Minister stressed the need to meet public demand through grid-based power supply. He directed that the transition plan prepared by the Power Division be shared with the Committee.
After in-depth discussions, the Committee recommended the bill for approval in the National Assembly. However, it deferred discussions on the Petroleum (Amendment) Bill, 2025 to allow more time for a detailed review and better-informed decisions. The Committee also emphasized that ongoing consultations must focus on quality and inclusiveness.
The Committee was informed that the Petroleum and Power Divisions are working closely together on the Prime Minister’s instructions to ensure a smooth shift from captive power and to tackle the growing circular debt problem in the petroleum sector. A Circular Debt Management Unit has already been set up, and the Committee will receive in-camera briefings in its next meeting to go over sensitive reform issues.
During the meeting, Committee Members raised a variety of concerns, including the performance of K-Electric in Sindh, challenges faced by SMEs, the future of captive power facilities, and the process for converting industrial gas meters.
