Captive power levy sparks Senate clash

Federal Law Minister Azam Nazeer Tarar and Opposition Leader Shibli Faraz engaged in a heated debate on Thursday over a money bill proposing an "off-the-grid" levy on gas-based captive power plants.

The exchange took place after Senator Anusha Rahman, on behalf of the Standing Committee on Finance Chairman Saleem Mandviwalla, presented the committee's report on the Off The Grid (Captive Power Plants) Levy Bill, 2025 in the house.

Opposing the bill, Fraz argued that imposing a levy on captive power plants would negatively impact not only industries but also housing societies that depend on them. He warned that the added cost would hurt industrial growth.

In response, Law Minister Tarar said that electricity prices had dropped by Rs10 per unit in the past two months. He added that the decision to impose the levy was made after thorough deliberation by Prime Minister Shehbaz Sharif.

"Re-negotiation has been carried out with three power plants, and all the things have been discussed in the standing committee," Tarar told Faraz. "I was hoping that the opposition leader would himself attend the committee meetings on the matter," he added.

Tarar said that captive power plants earned significant profits over their cost, adding that poor people were also taken into consideration while drafting the policy.

Faraz, meanwhile, insisted that with the imposition of the levy, electricity for industries will become expensive. "Unemployment will increase due to the high cost of electricity for industries."

He then addressed directly to the minister, saying: "Talk about the captive power plants, instead of my presence in the committee meeting.

While presenting the report, Anusha Rehman said that the recommendations on the money bill had been approved unanimously by the standing committee. She said that the Senate's recommendations would also be sent to the National Assembly Secretariat.

Earlier, the Senate Committee on Finance met with Anusha Rehman in the chair. During the meeting, Petroleum Secretary Momin Agha told the committee members that the government wanted to transfer captive power plants to the electricity grid.

While giving a briefing on the bill, the additional finance secretary said that 70% of captive plants were in Sindh. After a detailed review, the chair ruled that this bill was passed unanimously and recommendations would be sent to the house.

Meanwhile, four committee reports were also presented in the Senate. Senator Shahadat Awan, on behalf of Farooq Naek, chairman of Standing Committee on Law and Justice, presented the report on The Civil Courts (Amendment) Bill, 2025.

Standing Committee on Federal Education and Professional Training Chairperson Senator Bushra Anjum Butt presented the report on The Nexus International University of Health Emerging Sciences and Technologies, Islamabad Bill, 2025.

Minister for Human Rights, Senator Azam Nazeer Tarar laid before the Senate the Annual Reports of the National Commission for Human Rights for the years 2023 and 2024.