The International Monetary Fund (IMF) has rejected Pakistan’s proposal to provide subsidized electricity rates for Bitcoin mining operations, according to local media outlet Profit. Despite the setback, Islamabad officials say they are continuing discussions with international bodies to revise the strategy.
During a session of the Senate Standing Committee on Energy, Energy Secretary Dr. Fakhray Alam Irfan confirmed:
“As of now, the IMF has not agreed.”
IMF officials expressed significant reservations about the plan, warning that subsidizing Bitcoin mining could further destabilize Pakistan’s already fragile energy sector. Sources cited by Profit indicated that the IMF believes cheaper electricity for mining could distort the country’s national energy market and disrupt its power grid balance.
The IMF’s concerns go beyond just the energy issue. The organization also raised questions about the legal framework for mining in Pakistan, which remains underdeveloped and full of regulatory gray areas that could lead to legal and compliance challenges.
In addition, the IMF highlighted the stress on Pakistan’s national grid, arguing that dedicating 2,000 MW of power to Bitcoin mining and data centers could worsen existing power shortages, potentially driving up energy prices for households and other industries.
The IMF also criticized Pakistan for failing to consult it in advance. Islamabad unilaterally announced the initiative last May without coordinating with the IMF, straining bilateral relations and raising procedural concerns.
The proposed plan, promoted by the Pakistan Crypto Council with support from the Ministry of Finance, was designed to allocate 2,000 MW to mining and data centers in an effort to attract foreign investment and establish Pakistan as a regional digital asset hub.
Despite the IMF’s initial rejection, Dr. Irfan noted that negotiations remain ongoing. The government aims to reshape the subsidy plan to meet IMF conditions while still pursuing its broader ambition of boosting the country’s digital asset ecosystem.
Other topics discussed during the Senate committee session included technological upgrades to combat widespread electricity theft and improve overall grid efficiency.
July 2025, Cryptoniteuae
