The federal government has abandoned the proposed Winter Package for industries nationwide upon refusal from the International Monetary Fund (IMF).
The Finance Division labeled the four-month electricity ‘winter package’ for industry, contingent on incremental consumption, as vague and in violation of international commitments, reported Business Recorder
The Power Division had formulated three options for the country-wide implementation of the winter package, spanning from November 2023 to February 29, 2024, specifically targeting industrial electricity consumers with incremental consumption.
However, these options were expected to impact other consumer categories. For industrial consumers, three options were presented under the ‘winter package’:
- Option 1 proposed relief from Rs. 3.32 per unit to Rs. 7.86 per unit.
- Option 2 suggested relief from Rs. 8.57 per unit to Rs. 14.13 per unit.
- Option 3 outlined relief from Rs. 12.28 per unit to Rs. 17.84 per unit.
The Power Division argued that an increase in electricity demand during winters would optimize the use of the system generation capacity and reduce gas demand by shifting favorable demand towards electricity.
On October 25, 2025, the Finance Division commented that the proposal appeared to advocate cross-subsidization of industrial tariffs by all other consumers, contrary to the government’s commitment to avoid any cross-subsidization under international agreements. The division questioned how the proposal would address this issue.
On October 31, 2023, the Finance Division reiterated that quarterly adjustments and FC surcharges would be recovered on incremental consumption. The Finance Ministry sought quantifiable economic benefits from the previously approved industrial support packages and incremental consumption.
It was emphasized that there would be no additional financial implications on subsidies payable to Discos and K-Electric for the Federal Government, nor would it contribute to the circular debt.
The Finance Division also sought confirmation from the Power Division that the proposal did not conflict with the understanding reached with International Financial Institutions (IFIs) under the Standby Arrangement (SBA).
The Winter Package proposal was finally shared with the visiting IMF team during ongoing talks, and after their lack of consent, it was decided that the package should be scrapped.
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