Govt approves Rs47bn petroleum levy recovery, Rs11bn PTV bailout

The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved a financial bailout for Pakistan Television (PTV), a recovery plan for Rs47 billion in outstanding petroleum levy from Cynergico Refinery, and the use of funds collected under the captive levy on gas to reduce electricity rates for all consumers. The committee also gave the green light to the construction of the Multan to Rawalpindi oil pipeline in partnership with Azerbaijan and sanctioned Rs3 billion in relief for flood-affected families in Gilgit-Baltistan. Finance Minister Muhammad Aurangzeb chaired the meeting. The captive levy, imposed as part of the government’s agreement with the International Monetary Fund (IMF), applies to gas and RLNG supplies to captive power plants of industrial units. Introduced on July 1 it began at 5pc above the notified tariff, with scheduled increases to 10pc from Aug 1, 15pc from Feb 1, 2026, and 20pc from Aug 1, 2026. An act of parliament mandated that revenue generated from this levy be used exclusively to lower electricity tariffs for all consumer categories.