The federal government has presented a proposal to the International Monetary Fund (IMF) to revise electricity tariffs for solar panel owners using net metering.
The plan includes purchasing surplus electricity generated by solar users at a significantly lower rate, reducing it from the current Rs27 per unit to approximately Rs10 per unit, Express News reported on Friday.
The IMF has expressed concerns regarding the government’s approach to handling solar panel owners who remain off-grid.
While no official commitment has been made, the global lender has warned that the increasing adoption of solar energy could impact the efficiency of the national power sector in the future.
Meanwhile, the International Monetary Fund (IMF) has rejected Pakistan’s proposal to reduce the General Sales Tax (GST) on electricity bills.
The IMF’s decision poses challenges to Pakistan’s efforts to provide financial relief to consumers amid ongoing economic reforms. According to sources, the global lender also declined Pakistan’s request to extend the winter relief package for the industrial and agricultural sectors for the entire fiscal year.
Meanwhile, discussions between Pakistan and the IMF continue regarding measures to reduce circular debt in the energy sector.
Pakistan briefed the IMF on its plan to tackle circular debt by securing a loan of Rs1.25 trillion from commercial banks at an interest rate of 10.8%. An agreement on this loan has reportedly been finalised.