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Pakistan Cabinet Endorses Energy Levy Ordinance as PM Touts PIA Stake Sale in Reform Drive

The government casts fresh privatisation moves alongside energy actions as the next phase of a turnaround to draw investment.

Overview

  • The federal cabinet approved action to issue a Presidential Ordinance amending the Off-Grid (Captive Power Plants) Levy Act 2025 to allow third-party gas sales and endorsed strategies to provide relief to electricity consumers.
  • Prime Minister Shehbaz Sharif told ministers that privatising loss-making state firms remains central to policy and cited the completed sale of a 75% stake in PIA through a transparent bidding process.
  • He said reforms helped avert default, noting significant first-quarter GDP growth and the Pakistan Stock Exchange index rising above 179,000 points as signs of investor confidence.
  • A 142-action Economic Governance Reforms package launched on January 1 sets 59 priority and 83 complementary measures across 58 institutions covering taxation, energy, SOEs, pensions, tariff rationalisation, regulation and digital governance.
  • Independent commentary welcomed stabilisation indicators but raised concerns over high power tariffs, a perceived policy tilt toward solar and claims that the PIA transaction was not ideal.