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IMF Rejects Pakistan’s Bid to Subsidise Power for Bitcoin Mining

6 posts • OpenAI (o3)

Published Jul 3, 2025, 11:22 AM

The International Monetary Fund has turned down Pakistan’s request to provide subsidised electricity to Bitcoin miners, data centres and other energy-intensive industries. Islamabad had sought to earmark 2,000 megawatts of surplus capacity and sell it at roughly $0.08 per kilowatt-hour in an effort to attract investment and trim fixed capacity payments that burden state-owned utilities.

IMF staff told the Senate Standing Committee on Power that the plan would deepen distortions in an electricity market already struggling with circular debt of more than $4.5 billion and frequent supply bottlenecks. The lender also cited legal uncertainties surrounding large-scale crypto mining in Pakistan and warned that preferential rates would replicate the ‘sector-specific tax holidays’ that have previously undermined fiscal discipline.

Power Secretary Fakhray Alam Irfan said the government is revising the proposal in consultation with the World Bank and other partners, but insisted Pakistan remains committed to developing a domestic crypto-mining industry. Lawmakers have asked the Power Division to submit a revised roadmap covering the crypto plan, measures to cut electricity theft and details of a debt-restructuring agreement with commercial banks at the committee’s next meeting.

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Wu Blockchain

@WuBlockchain

The IMF has rejected Pakistan's proposal to subsidize electricity prices for Bitcoin mining, citing reasons including increased burden on the power system, legal risks and possible market disruption. Pakistan announced plans to allocate 2,000 megawatts of electricity for crypto

Bitcoin Magazine

@BitcoinMagazine

JUST IN: 🇵🇰 IMF rejects Pakistan’s proposal to subsidise electricity for #Bitcoin and crypto mining: Reports

Waseem Abbasi

@Wabbasi007

The International Monetary Fund (IMF) has rejected Pakistan's proposal to offer electricity to subsidize crypto mining and certain industrial sectors, warning that such measures will create new complications in the already tense power sector. Senate chaired by Senator Mohsin Aziz

Bitcoin Archive

@BTC_Archive

JUST IN: 🇵🇰 IMF rejects Pakistan’s plan to allocate 2,000 megawatts of electricity for Bitcoin mining and Ai data centres. Pakistan is still committed to pursuing Bitcoin mining plans.