The International Monetary Fund (IMF) has rejected the Energy Ministry’s proposed three-year marginal electricity tariff package for industrial use, according to ProPakistani.
The plan aimed to offer cheaper electricity to industries, artificial intelligence (AI) projects, and data mining operations based on marginal cost due to an 8,000 MW surplus in the national grid at the time.
Under the proposal, consumers would only pay the actual production cost and capacity charges for additional electricity consumption, with all other components, including various taxes, waived.
Sources said the package also included proposals to reduce per-unit taxes on incremental electricity usage to incentivize industrial growth.
The IMF turned down the proposal due to the ministry’s inability to ensure 100 percent revenue recovery from these users. The Fund wants assurances of 100 percent cost recovery, including production and capacity charges.
The Energy Ministry is now working on revising the proposal and plans to present a modified version during the upcoming economic review talks with the IMF.
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