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Sunday June 22, 2025

Senate okays Off-Grid Power Levy Bill amid opposition outcry

Senator Anusha Rehman tabled standing committee report on bill in House

By Mumtaz Alvi
May 16, 2025
An image showing an interior view of the Senate hall. — Senate website/File
An image showing an interior view of the Senate hall. — Senate website/File

ISLAMABAD: The Senate Thursday adopted the House Standing Committee concerned report on the Off-the-Grid Captive Power Plants Levy Bill, while the opposition chanted “no, no”, fearing the legislation would lead to shutdown of industries and cause joblessness in the country.

Law Minister Azam Nazeer Tarar defended the legislation and explained that the government decided to tax captive power plants after threadbare discussions and consultations and having carried out market analyses. He pointed out that the industries had already ‘enough’ benefits and gained from exemption. “But now if the poor man and general masses are to be taken care of and create job opportunities, then such steps are needed to be taken,” he contended, brushing aside the opposition’s concerns.

Tarar said enough support had been extended to the industries in terms of captive power plants and now it was time benefits should reach the poor man as well. Already, he noted, during the last 60 days, around Rs10 per unit relief had been given to the domestic and commercial consumers due to various measures taken by the government and levying captive power plants was part of the overall policy.

The minister conceded that the proposed levy would also affect prime minister’s sons, the government circles as well as lawmakers sitting across the aisle, but it was imperative to do so.

Earlier, as Senator Anusha Rehman tabled the standing committee report on the bill in the House, Leader of Opposition Syed Shibli Faraz said that captive power plants were allowed in view of power loadshedding and costly electricity, which paid off and industries regained competitiveness and jobs were also created but this latest move would reverse the gains.

He alleged that industries had been specifically targeted and that this step would be counter-productive after the industries had made significant investment as well and had updated their plants after an audit was carried out previously.

Earlier, Syed Waqar Mehdi of the PPP from Sindh was administered oath as a new member of the House. Congratulating him, Leader of Opposition Shibli Faraz regretted that on one hand, a senator from Sindh was elected within 30 days, one senator from Balochistan had made his way to the House and poll schedule was issued for a vacant seat in Punjab while, on the other hand, Khyber Pakhtunkhwa was being denied this constitutional right of representation in the Senate.

Law minister again rose and pointed out that the matter of reserved seats was sub judice and pending before a 13-member bench of the Supreme Court.