Relief for industries as PHC stays levy
The Peshawar High Court (PHC) has suspended the imposition and recovery of the newly introduced levy on all industries generating electricity through gas-run generators.
A division bench comprising Justice Syed Arshad Ali and Justice Qazi Jawad issued the restraining order on Wednesday.
The federal government had imposed the levy through an ordinance promulgated in January 2025, requiring all captive power producers to pay a levy determined by the federal government.
However, the cement and textile industries, being among the captive power producers, challenged the ordinance in the PHC, requesting the court to restrain the federal government from notifying the levy rate.
The notification was subsequently issued on March 7, 2025, setting the levy at Rs791 per MMbTU. A formal application was moved for the suspension of the notification.
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Express Tribune
22-05-2025
- Express Tribune
Power generation hits 4-year high in April
Listen to article Pakistan's power generation in April 2025 surged to 10,513 gigawatt-hours (GWh), reflecting a robust 22% year-on-year (YoY) and 25% month-on-month (MoM) increase — the highest monthly generation recorded in the past 48 months, according to data published by the National Electric Power Regulatory Authority (NEPRA). "Power generation in April'25 surged by 22% YoY, highest in 48 months, to 10,513 GWh," wrote Arif Habib Limited (AHL). Despite this sharp rise, generation remained broadly aligned with the regulatory reference level, helping produce a positive Fuel Cost Adjustment (FCA) for the month, the first since June 2024. "Shift to expensive fuel mix resulted in the first positive FCA after June 2024," said Research Head of Optimus Capital, Maaz Azam. The uptick in generation is largely attributed to soaring electricity demand, spurred by rising temperatures and reduced reliance by industries on captive power generation. Analysts believe the shift was also influenced by lower grid tariffs, which made national grid electricity more attractive compared to captive sources. "The rise in generation is attributed to increased demand, driven by a reduction in tariffs," said Research Head of AHL, Sana Tawfiq. Cumulative power generation during the first 10 months of the fiscal year 2025 (10MFY25) reached 100,661 GWh, showing a marginal decline of 0.4% YoY from the same period last year. In terms of source-wise contribution, hydropower (hydel) led the mix with 2,306 GWh (22% share), up 11% YoY, followed by re-gasified liquefied natural gas (RLNG) at 2,157 GWh (21%) and nuclear at 1,882 GWh (18%). A notable highlight was the 59% YoY growth in local coal-based generation, which rose to 1,540 GWh, supported by increased utilisation and favourable fuel costs. Conversely, generation from imported coal and natural gas declined by 32% and 26% YoY, respectively, reflecting deliberate cost-cutting and fuel optimisation strategies. Wind and solar energy maintained a combined share of 9.2%, consistent with seasonal patterns, while residual fuel oil (RFO) re-entered the generation mix with 83 GWh at a steep cost of Rs28.77/kWh. From a policy perspective, a significant development in March 2025 was the imposition of a Rs791/mmbtu levy on gas-based captive power plants (CPPs), raising their effective gas tariff to Rs4,291/mmbtu. According to estimates by AKD Securities, this translates into a staggering generation cost of around Rs42/kWh for off-grid captive units operating at 35% thermal efficiency. This steep cost differential prompted many industrial users to switch to relatively cheaper grid electricity, which averaged around Rs28/kWh (excluding taxes and duties). While the fuel cost of power generation rose by 8% YoY to Rs9.92/kWh in April 2025, driven by a heavier reliance on expensive fuels like RLNG and RFO, the average cost of generation actually fell on a MoM and YoY basis. It dropped to Rs8.95/kWh, down 5% YoY and 8% MoM, compared to Rs9.75/kWh in April 2024reflecting improved fuel mix efficiency and lower reliance on imported fuels. According to Optimus Capital Management, the total generation of 10,513 GWh in April was slightly below the reference level of 10,550 GWh, a shortfall of just 0.4%. However, changes in the fuel mix were stark. Hydel power dropped by 28.6% versus its reference (3,228 GWh), while coal-fired generation soared by 48.6%, with imported coal usage jumping 115.1% and local coal rising 22.5%. Meanwhile, RLNG generation grew by 42.1%, and nuclear generation fell by 22.3%. The cost impact of this fuel mix shift was significant. RLNG's contribution to fuel cost jumped to Rs4.98/kWh, up from a reference of Rs3.31/kWh. Local and imported coal together contributed Rs3.30/kWh, while nuclear (Rs0.38/kWh) and hydel (zero marginal cost) remained low-cost contributors. The net result was a positive FCA of Rs1.27/kWh, calculated against a reference fuel cost of Rs7.68/kWh. This marked change in fuel mix, particularly the increased reliance on RLNG and coal, alongside stable generation levels, led to the country's first positive FCA adjustment in 10 months, a noteworthy development for both consumers and the broader energy sector.
Business Recorder
17-05-2025
- Business Recorder
CJP visits Bannu Bench of PHC
ISLAMABAD: Chief Justice of Pakistan (CJP) Yahya Afridi emphasised that the independence and safety of judges, particularly of the district judiciary is essential for the fair and effective delivery of justice. CJP Yahya Afridi, on Friday, visited the Bannu Bench of the Peshawar High Court (PHC) to express his solidarity with the judges working in a challenging environment. During the visit, the Chief Justice met with the PHC Chief Justice SM Attique Shah, and held detailed discussions on institutional capacity building for both the judiciary and the legal fraternity. He also engaged with judges of the PHC, members of the District Judiciary including Karak, Bannu, Lakki and North Waziristan, and representatives of the legal community posted in Bannu. Key deliberations centered on the agenda of the National Judicial (Policy Making) Committee (NJPMC), with particular emphasis on institutional synergy, judicial capacity enhancement, and legal education reforms. These priorities were reiterated and thoroughly discussed with members of the judiciary and the bar. Topics included the importance of addressing commercial litigation and the proposal for establishing a dedicated Commercial Litigation Corridor; the introduction of Double Docket Courts as an optional feature involving cooperation among parties, the bench, and the bar; the expansion of court-annexed mediation; and the revival of Model Criminal Courts to address delayed cases. The Chief Justice also emphasised the urgent need for judicial automation, referencing the upcoming symposium on automation and Artificial Intelligence in the justice sector. Additionally, it was underscored that funds should be prioritised for underdeveloped regions in accordance with prescribed guidelines. The importance of facilitating foreign training and exposure visits for judges serving in such areas was acknowledged, alongside the principle that the most competent judges be posted to underdeveloped regions. Lastly, the development of a Performance Excellence Index for judicial officers was discussed as a tool to promote merit, transparency, and accountability. A prominent topic of discussion was the proposal to integrate standardized training modules for apprentice lawyers. In this regard, Bar Councils across the country have been invited to submit a joint proposal to be considered for inclusion in the upcoming NJPMC meeting. This initiative represents a significant move towards harmonising legal education and practical training nationwide. As part of his broader agenda for CJS reforms, the Chief Justice also visited local correctional facilities. During his inspection of the jail, he reviewed prison conditions, visited the hospital and kitchen, inaugurated a new Drug Rehabilitation Centre, and interacted with inmates to understand their concerns. In a notable instance, when the jail authorities were asked to present the inmate with the oldest pending case from the condemned category before the Supreme Court, they took the Chief Justice to prisoner Bahadur Khan. The Chief Justice expressed regret over the prolonged delay in his case, which had remained pending since 2019. Despite clear policy guidelines stating that no case of a condemned prisoner should remain unresolved beyond 2024, he was informed that the matter had only recently been decided on April 23, 2025. Despite repeated efforts to encourage inmates to voice any concerns, no prisoner responded in the presence of jail authorities. The Chief Justice underscored the importance of ensuring transparency, humane treatment, and accountability within the prison system, in accordance with constitutional principles and international standards. He also directed the District Police Officer (DPO) to ensure the timely submission of challans and emphasised the role of the District and Sessions Judge in activating the Criminal Justice Coordination Committee for improved inter-agency collaboration. In addition, the Chief Justice conducted a thorough review of the security protocols for judicial officers and court premises. He emphasised the need for a secure and enabling environment in all courts in the country that allows the judiciary to discharge its constitutional duties with independence and integrity. Copyright Business Recorder, 2025
Express Tribune
14-05-2025
- Express Tribune
Sales Tax Act for ex-FATA, PATA restored
Income tax collection was about Rs335 billion more than the target, offsetting the impact of missed sales tax and customs duty targets. photo: file The Constitutional Bench has reinstated the Sales Tax Amendment Act for the formerly FATA and PATA, suspending the Peshawar High Court's earlier verdict that had nullified the act. The case concerning the exemption granted under the Sixth Schedule of the Sales Tax Act for residents of FATA and PATA was heard on Wednesday by the five-member Constitutional Bench, headed by Justice Amin-ud-Din Khan. Other members of the bench included Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Syed Hasan Azhar Rizvi, and Justice Shahid Bilal Hassan.
