Islamabad (Commerce Desk) The International Monetary Fund (IMF) has conditionally agreed to Pakistan’s proposal to reduce the levy imposed on gas, raising expectations of relief in gas prices for the industrial sector.
According to sources, following IMF approval, the levy on captive power plants is expected to be reduced by 30 to 60 percent, which may lower production costs for industries.
It has also been reported that the IMF has agreed to a new levy formula proposed by the Ministry of Energy, under which the levy will now be determined on an average basis instead of being linked to peak hours.
Sources further stated that the approval comes with the condition that demand from the national grid should not decrease, and if a decline in demand occurs, the levy may be increased again.
Officials say the main objective of this policy is to gradually shift industrial consumers towards the national electricity grid.
It is worth noting that currently a levy of Rs 1,343 per MMBTU is imposed on captive power plants, while the industrial sector is already under pressure due to high energy costs.