The federal government has approved a new plan to provide electricity relief to consumers using funds collected from the Caputo Power Levy, sources confirmed. The plan, in line with IMF conditions, will transfer relief to consumers’ electricity bills on a monthly basis, distributed every two months.
Under the Caputo Power Levy Act, which came into effect in June 2026, the levy on Caputo power plants is being implemented in phases: 5% initially, rising to 10%, then 15% in February 2026, and 20% by August 2026. The funds collected from this levy will be used to reduce tariffs for all categories of electricity consumers.
Authorities warned that non-payment of the levy will result in action against the respective power plants, including potential suspension of gas supply in case of continuous default. The federal government had already increased gas tariffs for Caputo power plants in February 2026, from 3,000 PKR to 3,500 PKR, laying the groundwork for this relief initiative.
This step is expected to provide significant financial relief to electricity consumers while ensuring that Caputo power plants comply with levy regulations
