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ISLAMABAD: In a major retreat, the government had to immediately notify an increase in gas rates for industrial captive power plants (CPPs) by about 23pc and scale down temptation for a substantial cut in power rates to get the policy negotiations going with a visiting staff mission of the International Monet­ary Fund (IMF) for disbursement about $1.1bn in a couple of weeks.

A top official engaged in the ongoing talks told Dawn that the fund mission led by Nathan Porter had taken a tough stance on ‘grid levy’ on the supply of natural gas or liquefied natural gas, or both, to industrial CPPs despite commitments. Therefore, the government completed all formalities in a speedy manner to impose Rs791 per million British thermal unit (mmBtu) grid levy with effect from March 7, 2025, and provided its copies to the fund staff.

“In exercise of the powers conferred by sub-section (1) of section 3 of the Off Grid (Captive Power Plants) Levy Ordinance, 2025 (I of 2025), the federal government is pleased to notify that the rate for the purpose of sub-section (1) of the said section 3 shall be 791 rupees per million British thermal units,” said a notification........

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