Electricity Bill Relief Pakistan Announced for 2025
Electricity bill relief Pakistan is set to benefit consumers nationwide as the federal government has decided to pass on financial relief through revenue generated from the captive power levy.
According to sources, the relief will be reflected in electricity bills on a regular basis, with consumers expected to receive benefits every two months.
Captive Power Levy to Fund Consumer Relief
The captive power levy was imposed on captive power plants under an agreement with the International Monetary Fund IMF.
Initially introduced as a fiscal measure, the government has now decided to utilise the collected revenue to reduce electricity costs for domestic and commercial consumers.
Officials confirmed that the relief will be distributed monthly, though adjustments in bills may appear bi monthly due to billing cycles.
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Electricity bill : Phased Increase in Levy Rates
The levy is being implemented in multiple phases to gradually increase government revenue while minimising shock to the industrial sector.
The phased structure includes:
- 5 percent levy imposed in the first phase last year
- Increase to 10 percent in the current phase
- Levy rising to 15 percent in February 2026
- Final increase to 20 percent in August 2026
Sources said the gradual increase was designed to ensure sustainability of electricity subsidies.
IMF Agreement and Policy Background
Pakistan had earlier shared its plan with the IMF to use proceeds from the captive power levy to lower electricity prices for end consumers.
The levy was formally introduced under the Captive Power Plants Levy Act after the federal government raised gas tariffs for captive power plants.
From February 1 2025 gas tariffs for captive power plants were increased from Rs 3000 to Rs 3500 per unit.
Electricity bill : Strict Action Against Non Payment
Officials have warned that strict enforcement measures will be taken against captive power plants that fail to pay the levy.
Penalties include:
- Financial fines
- Licence related actions
- Disconnection of gas supply in cases of persistent default
Authorities said enforcement is essential to ensure funds meant for public relief are not compromised.
Electricity bill : How Consumers Will Benefit
The electricity bill relief Pakistan initiative aims to ease the financial burden on households already affected by inflation and high utility costs.
Government officials believe that redirecting levy revenue toward consumer relief will improve public confidence while maintaining compliance with IMF commitments.
Historical Context Electricity Pricing in Pakistan
Over the past decade Pakistan has faced rising electricity tariffs due to fuel costs circular debt and currency devaluation.
Various subsidy based relief measures have been introduced but long term sustainability has remained a challenge. Using captive power levy revenue marks a shift toward targeted internal funding for consumer support.
What to Expect Going Forward
Consumers can expect gradual relief rather than a one time reduction. The scale of relief may increase as levy rates rise in later phases.
Authorities stressed that transparency and enforcement will be key to ensuring the success of the program.
Frequently Asked Questions FAQs
What is the captive power levy
A tax imposed on captive power plants under IMF backed reforms.
When will consumers see relief
Relief is expected to appear every two months in electricity bills.
Will the levy increase further
Yes it will reach 20 percent by August 2026.
What happens if levy is not paid
Gas supply to defaulting plants may be disconnected.
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