ISLAMABAD: The International Monetary Fund (IMF) has rejected a proposed marginal energy relief package submitted by Pakistan’s Ministry of Energy, according to sources familiar with the matter.
The package aimed to provide 8,000 megawatts of surplus electricity at reduced rates to industrial consumers. However, energy ministry officials were unable to persuade the IMF to support the plan during ongoing economic review discussions.
Sources revealed that the proposal included a three-year relief plan targeting industrial sectors, including AI and data mining, with electricity pricing based on marginal cost. The ministry had suggested exemptions on taxes per unit of electricity consumed from surplus power, proposing that only production costs and capacity charges would apply, while all other taxes and levies would be waived.
The IMF dismissed the proposal, citing concerns about the ministry’s inability to ensure full recovery of dues. The Fund emphasized that any approval of such a package must be contingent upon 100 percent recovery of electricity payments, sources added.
The energy ministry is expected to present a revised version of the proposal in the next phase of talks with the IMF delegation.
