ISLAMABAD: The Petroleum Division issued directives to both gas companies – Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for withdrawal of imposition and collection of levy under Grid (Captive Power Plants) Levy Ordinance 2025.
In a letter to both gas companies, the Petroleum Division states, “A letter of division dated April 11, 2025 on the subject cited above and to convey that the said letter is hereby withdrawn with immediate effect”.
On April 11, 2025, the Islamabad High Court (IHC) directed the Attorney General for Pakistan (AGP) to refund all amount of levy to the captive power plants after the expiry of Grid (Captive Power Plant) Levy Ordinance, 2025.
According to an order of the IHC issued, in the event that the impugned Ordinance does not receive Parliamentary approval, all sums collected under its authority shall, upon the Ordinance’s lapse, be forthwith refunded to the petitioners in full, without deduction or delay.
To meet a condition of the International Monetary Fund (IMF), Pakistan imposed Rs791 per Million British Thermal Units levy on the supply of gas to the Captive Power Plants. “In exercise of the powers conferred by sub-section (1) of section 3 of the Off the 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 Rs791 per Million British Thermal Units,” said a notification issued by the Petroleum Division in March.
Captive power plants as defined in the Grid (Captive Power Plant) Levy Ordinance, 2025 promulgated by the President of Pakistan on January 31, 2025.
Copyright Business Recorder, 2025
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