ISLAMABAD – July 25, 2025: The International Monetary Fund (IMF) has rejected a proposed three-year marginal electricity tariff package designed to provide cheaper power for industries, AI projects, and data mining operations, sources told ProPakistani.
The Energy Ministry’s plan sought to utilize the 8,000 MW surplus in the national grid by offering electricity at marginal cost, meaning consumers would only pay actual production costs and capacity charges for additional usage. Taxes and other surcharges would have been waived, reducing power costs for industries.
The package also suggested cutting per-unit taxes on incremental electricity consumption to stimulate industrial growth and tech investment in Pakistan.
However, the IMF turned down the proposal, citing concerns over revenue recovery risks. The Fund insisted that 100% cost recovery—including production, capacity charges, and taxes—must be ensured for any tariff relief.
Now, the Energy Ministry is revising the proposal and will present a modified version during the upcoming IMF economic review talks.
This comes at a time when industries and technology firms are seeking lower energy costs to stay competitive amid rising electricity tariffs and economic pressures.
