Relief for industries as PHC stays levy

The Peshawar High Court (PHC) has suspended the imposition and recovery of the newly introduced levy on all industries generating electricity through gas-run generators.

A division bench comprising Justice Syed Arshad Ali and Justice Qazi Jawad issued the restraining order on Wednesday.

The federal government had imposed the levy through an ordinance promulgated in January 2025, requiring all captive power producers to pay a levy determined by the federal government.

However, the cement and textile industries, being among the captive power producers, challenged the ordinance in the PHC, requesting the court to restrain the federal government from notifying the levy rate.

The notification was subsequently issued on March 7, 2025, setting the levy at Rs791 per MMbTU. A formal application was moved for the suspension of the notification.