Pakistan, Oct. 2 -- Crucial decisions have emerged from the ongoing economic negotiations between the Government of Pakistan and the International Monetary Fund (IMF).

The IMF has given Pakistan a deadline until 2031 to completely eliminate the circular debt in the power sector. As part of this agreement, Pakistan is required to maintain zero growth in circular debt flow each year moving forward.

According to sources, the government has decided to increase the transition levy on captive power plants. A 10% levy will be imposed on captive power plants in the current fiscal year, which will increase to 15% from January 2026. The government expects to generate PKR 105 billion in revenue during the current fiscal year from off-grid captive ...