The International Monetary Fund (IMF) has rejected the Energy Ministry’s proposed three-year marginal electricity tariff package for industrial use, according to sources.

The plan aimed to provide cheaper electricity to industries, artificial intelligence (AI) projects, and data mining operations by leveraging an 8,000 MW surplus in the national grid. Under the proposal, consumers would only pay the actual production cost and capacity charges for additional electricity consumption, with all other components, including taxes, waived.

The package also included measures to reduce per-unit taxes on incremental electricity usage to encourage industrial growth and attract investment in energy-intensive sectors.

The IMF rejected the proposal, citing the Energy Ministry’s inability to ensure 100% revenue recovery from the targeted users. The Fund emphasized the need for full cost recovery, including production and capacity charges, as a prerequisite for approval.

Following the rejection, the Energy Ministry is revising the proposal and plans to present a modified version during the upcoming economic review talks with the IMF.