PM2 not able to resolve import without .ts extension in typescript files

Question

I am creating boilerplate for microservices using express, Typescript and Lerna. My setup is working fine locally but when I use PM2 for prod deployment its giving following error.

Error: Directory import '/Users/dramor/Development/POC/micro-poc/packages/api-gateway/dist/config' is not supported resolving ES modules imported from /Users/dramor/Development/POC/micro-poc/packages/api-gateway/dist/index.js

/pacakges/api-gateway/src/index.ts

import { initConfig } from './config';
import express from 'express';
import { authenticateJWT, handleLoginReq } from './config/passport';
import _ from 'lodash';

// ..rest of the code

PM2 is expecting file but found config directory, but when we change import to /config.ts then typescripts gives error

An import path can only end with a '.ts' extension when 'allowImportingTsExtensions' is enabled.

if I use allowImportingTsExtensions = true with emitDeclarationOnly = true then dist folder does not create JS files. It creates only type definitions.

Possible solutions could :

1. Import with .ts extension and generate dist with JS
2. Map import of /config to /config.ts or /config/index.ts in PM2

I am attaching configuration for more clarity

Directory structure:

boilerplate
 --packages
   -- api-gateway
     -- package.json
     -- tsconfig.json (extending root config, provided below)
tsconfig.json

Related dependencies from root package.json

"lerna": "^8.0.2",
"lodash": "^4.17.21",
"nodemon": "^3.0.2",
"pm2": "^5.3.1",
"ts-node": "^10.9.2",
"typescript": "^5.3.3"

root - tsconfig.json

{
"compilerOptions": {
  "target": "es2020",
  "module": "es2022",
  "lib": ["es2020"],
  "strict": false,
  "esModuleInterop": true,
  "skipLibCheck": true,
  "forceConsistentCasingInFileNames": true,
  "moduleResolution": "node",
  "resolveJsonModule": true,
  "baseUrl": ".",
  "paths": {
    "*": ["types/*"],
    "@/*": ["*"]
  },
  "rootDir": "./packages",
  "sourceMap": true,
  "declaration": true,
  "noUnusedParameters": false,
  "exactOptionalPropertyTypes": false
},
  "ts-node": {
    "esm": true
  }
}

/packages/api-gateway/tsconfig.json

{
  "extends":"../../tsconfig.json",
  "compilerOptions": {
    "outDir": "dist",
    "rootDir": "src",
  },
 "include": ["**/*.ts"],
 "exclude": ["node_modules", "dist"]
}

/packages/api-gateway/pakage.json

{
"name": "@boilerplate/api-gateway",
"version": "1.0.0",
"main": "dist/main.js",
"type": "module",
"devDependencies": {
    "@types/express": "^4.17.21"
},
"scripts": {
    "clean": "rm -rf dist",
    "build": "yarn clean && tsc --build",
    "debug": "nodemon --inspect src/index",
    "dev": "nodemon src/index.ts",
    "prod": "NODE_ENV=prod pm2-runtime dist/index.js",
    "test": "echo TODO && exit 1"
},
"nodemonConfig": {
    "env": {
        "NODE_ENV": "development"
    },
    "execMap": {
        "js": "babel-node"
    },
    "ext": "ts,js,json",
    "verbose": true,
    "watch": [
        "src"
    ]
},
"babel": {
    "plugins": [
        [
            "@babel/transform-runtime"
        ],
        "@babel/plugin-proposal-class-properties"
    ],
    "presets": [
        "@babel/preset-env"
    ]
},
"dependencies": {
    "@types/jsonwebtoken": "^9.0.5",
    "@types/lodash": "^4.14.202",
    "@types/passport": "^1.0.16",
    "@types/passport-jwt": "^4.0.1",
    "express": "^4.18.2",
    "jsonwebtoken": "^9.0.2",
    "passport": "^0.7.0",
    "passport-jwt": "^4.0.1"
}
}

If I fix PM2 problem then typescript throws an error and if typescript errors are fixed then build fails with error mentioned at start.

How can I solve this issue so that PM2 runs fine with or without .ts extensions? Or is there better approach to do this?