Pakistan, May 19 -- The federal government has officially presented its plan to the International Monetary Fund (IMF) for reducing electricity prices using revenue from a newly introduced Captive Power Levy. According to estimates, the first phase will lower electricity rates by Rs0.90 per unit, offering relief amid inflation and rising utility costs.

Initially, a 5% levy has been imposed on gas-based captive power plants, which will increase gradually to 20% by August 2026. The government aims to use this additional revenue to subsidize electricity tariffs across all consumer categories, including households and industries.

The plan comes as part of broader fiscal adjustments under the IMF programme. The levy ordinance has been issued,...