Pakistan pitched a bold revision to the International Monetary Fund (IMF), slashing the buyback rate for surplus solar power from net-metered users from Rs27 to Rs10 per unit.
The Pakistan Solar Tariff tweak aims to recalibrate energy economics, but the IMF flagged worries that off-grid solar growth could dent national grid efficiency. No deal’s locked yet, as talks churn on.
The IMF delivered a double blow, rejecting Pakistan’s bid to cut General Sales Tax (GST) on electricity bills and extend winter relief for industrial and agricultural sectors. These snubs stymie consumer relief amid reforms. Meanwhile, Pakistan’s Rs1.25 trillion loan at 10.8% from commercial banks finalized to tackle circular debt gained traction in ongoing IMF discussions, offering a lifeline to the power sector.
Read: IMF Rejects Pakistan’s GST Cut on Electricity Bills
The Pakistan Solar Tariff proposal slashing rates by over 60% stirs debate. The IMF’s caution hints at a balancing act: solar’s rise could strain grid finances. With GST and relief off the table, Pakistan is leaning on debt restructuring to steady the ship. Will solar users bite at Rs10? The stakes are electric!
The Pakistan Solar Tariff clash rate cuts pitched, relief denied lights up Pakistan’s IMF saga.
