The International Monetary Fund (IMF) has declined to approve Pakistan’s proposal to provide subsidized electricity tariffs specifically for cryptocurrency mining operations. Reports suggest that local authorities continue to engage with global financial institutions to further refine this initiative.
“Currently, the IMF has not reached an agreement,” stated Secretary of Power Dr. Fakhray Alam Irfan during a session with the Senate Standing Committee on Power.
According to a report by Profit, the IMF has expressed concerns that the proposed plan could exacerbate existing pressures on the power sector. Dr. Irfan informed the committee that the IMF is particularly worried about potential market distortions as a result of Pakistan’s suggested subsidized energy rates.
IMF Raises Red Flags Over Pakistan’s Electricity Plan for Bitcoin Mining
Last month, the IMF scrutinized Pakistan’s push for Bitcoin mining, highlighting potential legal implications and additional strain on the nation’s stressed power grid.
The IMF outlined various concerns, such as the legal status of cryptocurrency mining within Pakistan and the risk of further burdening the already overtaxed power infrastructure.
The @IMFNews is pushing back on Pakistan’s plan to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers.#IMF #Bitcoin https://t.co/X9YHqz9qTO
— Finance Newso.com (@Finance Newso) June 1, 2025
In addition, the fund warned of issues related to resource allocation and potential ripple effects on electricity tariffs. Notably, it was pointed out that Pakistan had not consulted the IMF prior to revealing this announcement.
In May, Pakistan unveiled a plan to dedicate 2,000 megawatts of power towards cryptocurrency mining and data centers, aiming to attract foreign investment. This initiative is championed by the Pakistan Crypto Council and has received backing from the Ministry of Finance.
Ongoing Negotiations with International Authorities
Dr. Irfan confirmed that discussions are ongoing as the government seeks to revise its energy subsidy plan following the IMF’s rejection.
The committee also addressed technological advancements aimed at combating electricity theft during their discussions.
Furthermore, they reviewed the government’s recent agreement with scheduled banks to mitigate the circular debt issue. Senator Shibli Faraz voiced criticism, alleging that banks were compelled under duress to provide the necessary loans.
The committee has instructed the Power Division to deliver detailed responses to several raised concerns at their next meeting.
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