Pakistan, July 25 -- The federal government has imposed a new levy of Rs 238 per million British thermal units (MMBTU) on gas supplied to captive power plants. This move comes as part of the International Monetary Fund's (IMF) reform conditions aimed at improving Pakistan's energy sector finances. The government plans to use the revenue generated from this levy to reduce electricity tariffs for consumers across the country.

The levy has been imposed under the Off-The-Grid Captive Power Plants Levy Act 2025. Officials estimate that the new charge could lower electricity prices by about 90 paisa per unit in the initial phase. Moreover, the government has designed a plan to gradually increase this levy by up to 20 percent in the coming mont...