Pakistan's Senate Committee on Finance and Revenue has rejected the imposition of a carbon levy on petroleum products and recommended to remove the ceiling of surcharge placed on electricity consumption.
Sources at the Finance Ministry told Nukta that the majority of lawmakers opposed the government's proposal to impose a carbon levy of PKR 2.5 per liter on petroleum products.
The levy, if approved, was expected to yield collection of PKR 48 billion in new fiscal year. It was proposed to be doubled in fiscal year 2026-27.
Separately, officials from the Ministry of Energy briefed the committee on a surcharge on electricity bills, which is currently capped at PKR 3.23 per unit.
The Finance Bill for FY26 removes this cap. The proposal was unanimously approved by the committee.
The government recently took a nearly PKR 1.3 trillion loan from banks to reduce the circular debt. Under the plan, which has been approved by the federal cabinet, the amount for loan repayment will be charged from consumers through their electricity bills.
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