Islamabad, June 19, 2025: The Senate Standing Committee on Finance on Thursday approved a revision to increase the upper limit of surcharges on electricity bills in order to fulfill the requirements of the International Monetary Fund (IMF).
Officials from the Power Division informed that the surcharge cap is being increased as per the IMF’s recommendation to assist in cutting Pakistan’s escalating circular debt. Presently, a levy of Rs. 2.83 per unit in electricity bills is being imposed on household users and Rs. 3.23 per unit on business users.
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Senate Committee Chairman Saleem Mandviwala inquired why the responsibility of circular debt is consistently transferred onto electricity consumers. In reply, Chairman of the Federal Board of Revenue (FBR), Rashid Mahmood Langrial, explained that liabilities owed to Independent Power Producers (IPPs) are ultimately borne by the public.
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He also remarked that while IPPs secure profits through high interest margins, the government borrows from banks at relatively lower rates.
Senator Ahmed Khan endorsed the Power Division’s recommendation, stating that the revision would protect IPPs from exploitative dealings.
