ISLAMABAD: The National Assembly Standing Committee on Petroleum Division has recommended the Off the Grid (Captive Power Plants) Levy Bill, 2025 for passage in the National Assembly.
The Committee’s 9th meeting, chaired by Syed Mustafa Mehmood, MNA, was held at the Parliament House on Thursday. Opening the session, the Chair extended congratulations to all attendees in light of recent national developments and commended the Armed Forces of Pakistan for their professional handling of sensitive issues with India. He expressed full support for the military and lauded their dedication to safeguarding national interests.
The Committee confirmed the minutes of its previous meeting held on April 29, 2025, and welcomed the Federal Minister for Petroleum Division, members of the committee, and representatives from various ministries and departments. The session began with Fatiha Khwani for the martyrs of the recent suicide attack in Khuzdar, Balochistan.
Briefing the Committee, the Petroleum Minister presented the objectives of the Off the Grid (Captive Power Plants) Levy Bill, 2025, highlighting its alignment with Pakistan’s commitments under the IMF Extended Fund Facility. He emphasized that while the phase-out of captive power generation had long been considered, progress had been hindered by political and economic instability.
The bill, he said, aims to transition industries from captive power systems to the national grid to maximize surplus electricity usage, improve power sector efficiency, and ease fiscal pressure.
He assured the Committee that extensive consultations had taken place during the drafting process, and protections for industries have been incorporated to ensure minimal disruption to operations. He also acknowledged the Speaker of the National Assembly for his key role in facilitating consensus.
Addressing concerns over high electricity prices, the Minister stressed the need to meet public demand through national grid supply and directed the Power Division to share its transition plan with the Committee.
After thorough deliberation, the Committee recommended the bill for approval by the National Assembly. However, it postponed further discussion on the Petroleum (Amendment) Bill, 2025, allowing more time for review and detailed recommendations.
The Committee emphasized the need for quality and inclusive consultations on all petroleum-related reforms.
Members were also briefed on coordination efforts between the Power Division and Petroleum Division, as per the Prime Minister’s instructions, to manage the growing circular debt. A Circular Debt Management Unit has been established, and in-camera briefings are scheduled for the next meeting to cover sensitive aspects of the reform plan.
Committee members raised several key issues during the session, including the performance and reliability of K-Electric in Sindh, the impact of reforms on SMEs, the future role of captive power facilities, and the process for converting industrial gas meters.
The meeting was attended by MNAs Sardar Ghulam Abbas, Anwar Ul Haq Chaudhary, Malik Saif Ul Malook Khokhar, Mian Khan Bugti, Haji Jamal Shah Kakar, Syed Naveed Qamar, Asad Alam Niazi, Muhammad Moin Aamer Pirzada, and Gul Asghar Khan. Also present were Momin Agha, Secretary Petroleum Division; Masroor Khan, Chairman OGRA; Jam Muhammad Aslam, Additional Draftsman/Joint Secretary, Ministry of Law and Justice; along with other senior officials.
