The International Monetary Fund (IMF) has reportedly rejected a proposed energy relief package from Pakistan’s Ministry of Energy that sought to offer surplus electricity to industrial sectors at marginal cost.

According to informed sources, the proposal involved providing up to 8,000 megawatts of surplus electricity to industries — specifically AI, data mining, and manufacturing — at a reduced rate. The three-year plan aimed to stimulate industrial activity by leveraging idle power generation capacity, which currently remains underutilized due to low demand and billing inefficiencies.

The Ministry of Energy suggested reducing per-unit taxes and applying only the production and capacity charges to surplus consumption. Taxes, duties, and other regulatory costs were proposed to be waived to incentivize high-consumption industries.

However, IMF officials remained unconvinced, citing Pakistan’s failure to achieve full recovery of existing energy dues. The global lender emphasized that approval of any such package would require 100 percent collection from electricity users — a benchmark Pakistan has yet to meet consistently.

The rejection comes amid broader negotiations between Islamabad and the IMF under the ongoing economic review process. Energy reforms remain a critical pillar of Pakistan’s structural adjustment agenda, with the IMF urging greater transparency and financial discipline in the power sector.

Officials confirm that a revised energy subsidy framework is being drafted and will be presented during the next round of talks with the IMF delegation.