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The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved an Rs11 billion financial bailout for Pakistan Television (PTV) and endorsed a recovery framework for Rs47 billion in outstanding petroleum levy dues from Cynergico Refinery. The committee also decided to channel funds collected under the captive levy on gas towards reducing electricity rates for all consumer categories.
Chaired by Finance Minister Muhammad Aurangzeb, the ECC sanctioned the construction of a Multan–Rawalpindi oil pipeline in collaboration with Azerbaijan and approved Rs3 billion in relief for flood-affected families in Gilgit-Baltistan.
The captive levy, introduced under an IMF-backed agreement, applies to gas and RLNG supplied to captive power plants of industrial units. Initially set at 5 percent above the notified tariff from July 1, the levy will gradually rise to 10 percent from August 1, 15 percent from February 2026, and 20 percent from August 2026. By law, all revenue from the levy must be used to lower electricity tariffs for all consumers.
Levy Benefits to Be Shared With All Power Consumers
Some influential business groups lobbied to direct the levy exclusively toward industrial electricity rates, but the Power Division opposed the move. Upholding its stance, the ECC approved a monthly fuel cost adjustment (FCA) mechanism to pass on levy benefits to all consumers. Under this system, the Petroleum Division will remit funds to the Finance Division within two days of each month’s end, while the Power Planning & Monitoring Company (PPMC) will calculate relief amounts based on electricity sales and forward recommendations to Nepra. Consumers will see the benefits reflected in their bills with a two-month lag.
On the petroleum levy issue, the ECC approved a framework to recover about Rs47.5 billion from Cynergico PK Limited (CPL), which has defaulted since 2019. With surcharges, CPL’s liability stands near Rs60 billion. A settlement plan, facilitated by the Special Investment Facilitation Council (SIFC), requires CPL to pay Rs1 billion monthly to clear its dues. The Petroleum Division was directed to sign the settlement and enforce strict compliance.
Meanwhile, the ECC approved an Rs11 billion bailout for PTV after the government waived the television fee on electricity bills from July 2025. The decision severely impacted PTV’s revenue, leaving it unable to cover salaries, pensions, and other expenses. The Finance Ministry will immediately release Rs3.8 billion for the first quarter, followed by Rs2.396 billion for each remaining quarter, shifting the financial burden from electricity consumers to taxpayers.
