The International Monetary Fund (IMF) has rejected a proposed three-year marginal energy package put forward by Pakistan’s Ministry of Energy, aimed at incentivizing industrial consumption of surplus electricity.
Sources privy to the negotiations told reporters that the Ministry of Energy was unable to convince IMF officials during ongoing economic review talks. The ministry is now expected to present a revised proposal in the next round of discussions.
The proposed energy package was designed to offer discounted electricity — calculated on a marginal cost basis — to sectors such as artificial intelligence, data mining, and other energy-intensive industries. The plan was intended to utilize the country’s reported 8,000 megawatts of surplus power by offering reduced rates on electricity consumption that exceeds normal usage thresholds.
Under the original proposal, consumers would be charged only for production costs and capacity charges on excess electricity, while all other fees and taxes were to be waived.
However, the IMF declined to endorse the package, citing concerns over the Ministry of Energy’s inability to ensure full recovery of power sector dues — a key performance indicator under ongoing reform commitments.
Negotiations are expected to continue, with Pakistani authorities preparing a revised version of the industrial energy incentive plan.
