NA panel clears Bill to levy CPPs

ISLAMABAD: National Assembly Standing Committee on Petroleum cleared Off the Grid (Captive Power Plants) Levy Bill, 2025 for passage in the National Assembly meant to impose Levy on Captive Power Plants
The Federal Minister for Petroleum Division gave a detailed briefing on the “Off the Grid (Captive Power Plants) Levy Bill, 2025,” highlighting its significance as part of Pakistan’s commitments under the International Monetary Fund (IMF) Extended Fund Facility.
He noted that while the phase-out of captive power generation had long been under consideration, its implementation had been delayed due to prolonged political and economic constraints. The Minister emphasized that transitioning industries from captive power systems to the national grid is intended to optimize surplus electricity generation, improve efficiency in the power sector, and relieve financial pressures on the economy. The Minister informed the Committee that a comprehensive consultation process had been completed in drafting the bill and acknowledged the instrumental role played by the Speaker of the National Assembly in facilitating this process. He assured the Committee that the bill is aimed at serving public interest without disrupting industrial operations and that protections for the industrial sector have been incorporated. He also highlighted high electricity prices as a major concern and underscored the need to fulfill public demand through grid supply. The Minister directed that the transition plan prepared by the Power Division be shared with the Committee.
Following detailed deliberations, the Committee recommended the Off the Grid (Captive Power Plants) Levy Bill, 2025 for passage in the National Assembly. However, it postponed further discussion on the Petroleum (Amendment) Bill, 2025 to allow more time for a comprehensive review and informed recommendations. The Committee also stressed that the ongoing consultation process must focus on quality and inclusivity.
The Committee was informed that both the Power Division and Petroleum Division are coordinating closely under the Prime Minister’s directions to ensure a smooth transition and to address the growing circular debt in the petroleum sector. A Circular Debt Management Unit has been established, and in-camera briefings will be held during the next meeting of the Committee to discuss sensitive aspects of the reform agenda.
Committee Members raised a range of important issues including the performance and reliability of K-Electric in Sindh, challenges being faced by small and medium enterprises (SMEs), the future of captive power generation facilities, and the procedures for converting gas meters used for industrial processing. Ends