In a swift move just days before unveiling the federal budget, Pakistan’s National Assembly passed a controversial IMF-driven mini-budget on Thursday — the Captive Power Plants (Off-Grid) Levy Bill 2025 — without any debate and through a supplementary agenda. The bill aims to give legal cover to a previously imposed grid levy on industrial units using captive power through natural gas or LNG, retroactive from March 7.
Introduced by Petroleum Minister Ali Pervaiz Malik, the bill passed all parliamentary stages in a single day after the Standing Committee on Petroleum approved it minutes before the session. It was passed by a vote of 99 to 44, despite vocal opposition protest.
This legislation forms part of Pakistan’s commitments under the IMF’s Extended Fund Facility (EFF) and follows a similar mini-budget — the Income Tax (Amendment) Bill 2024 — passed on May 17. The minister said the goal is to shift industries from captive power to the national grid, which will enhance energy efficiency, reduce electricity costs, and ease the economic burden.
The bill also addresses IMF concerns about subsidized gas being used inefficiently. The government had already implemented the policy in March through a temporary ordinance, increasing gas tariffs for industrial captive power plants by around 23% and reducing electricity prices — steps aligned with IMF reform expectations.
With the ordinance nearing expiration, it was necessary to pass the bill through parliament. As a money bill, it was not required to go through the Senate. However, the Senate’s Finance Committee endorsed the bill without recommendations on May 16.
In a parallel development, the assembly unanimously passed a resolution strongly condemning India for suspending the Indus Waters Treaty. Lawmakers called it a breach of international law and a potential act of war, holding Indian PM Narendra Modi’s government responsible. They also blamed India for allegedly supporting a recent attack on a school bus in Khuzdar, Balochistan.
Earlier, proceedings were briefly paused due to a quorum issue raised by PTI’s Iqbal Afridi, highlighting the opposition’s continued resistance.