The Senate Standing Committee on Finance and Revenue, chaired by Senator Anusha Rahman Ahmad Khan, unanimously approved the Captive Power Plants Levy Bill, 2025 on Thursday, endorsing the legislation without any amendments or recommendations.

Secretary Petroleum Momin Agha briefed the committee on the objectives and framework of the bill. He explained that the legislation aims to reduce the burden of underutilized power capacity and ultimately lower electricity prices for the public.

According to Agha, a 5% levy was imposed immediately following the issuance of the ordinance. The rate is scheduled to increase to 10% in July 2025, 15% in February 2026, and 20% in August 2026. The bill is designed to incentivize industries using gas and RLNGbased captive power to transition to the national power grid.

This move is expected to boost electricity demand, optimize the use of excess generation capacity, and improve liquidity within the power sector. The revenue generated from the levy will be directed toward reducing tariffs for power consumers.

The legislation aligns with the government’s commitment, as reiterated by the Prime Minister, to bring down electricity costs across the board.

Senators Munzoor Ahmed and Muhammad Abdul Qadir attended the meeting in person, while Senator Mohsin Aziz participated virtually. Officials from relevant departments also joined the session.