A proposal in Pakistan to utilize its extra electrical power for cryptocurrency mining has encountered a major hurdle. The International Monetary Fund (IMF) has reportedly declined a request to provide subsidized electricity rates to energy-intensive industries, including those involved in Bitcoin mining.
According to reports from Independent Urdu, a news outlet, Pakistan’s Power Secretary, Fakhre Alam Irfan, informed the Senate energy committee that the IMF believes such discounted rates could disrupt the energy market. The IMF also expressed concerns that this could exacerbate the existing challenges within Pakistan’s already-fragile power sector.
Despite Pakistan’s surplus of electricity, particularly during the winter months, the IMF is apprehensive that these special pricing programs could destabilize the energy market. Irfan stated that all major energy policies require approval from the International Monetary Fund.
The Power Division’s proposed plan from November 2024 suggested a marginal-cost tariff of 22–23 Pakistani rupees (approximately $0.08 USD) per kilowatt-hour for specific industries. These industries would include copper smelting, data centers, and cryptocurrency mining operations. Government officials had previously contended that this plan would increase the demand for electricity, effectively absorbing the nation’s excess capacity.
Related: Strategy’s Michael Saylor to help Pakistan with crypto pivot
IMF Concerned About Economic Imbalances
The IMF is said to have rejected the proposal, drawing parallels to sector-specific tax incentives that have historically led to economic instability in Pakistan. This information comes from the report mentioned previously.
Irfan clarified that the proposal has not been completely dismissed and is currently being reviewed by the World Bank and other global partners. The government is actively working to refine the plan based on feedback from these international organizations.
Cointelegraph reached out to the IMF requesting comments, but no response had been received at the time of publication.
In May, Pakistan announced plans to allocate 2,000 megawatts of spare electricity to Bitcoin (BTC) mining facilities and artificial intelligence centers. This was presented as part of a broad digital transformation project spearheaded by the Pakistan Crypto Council and supported by the Ministry of Finance.
At that time, Finance Minister Muhammad Aurangzeb unveiled tax breaks for AI centers and exemptions from import duties for Bitcoin miners, with the goal of attracting foreign investment.
Bilal Bin Saqib, a proponent of crypto in Pakistan, initially suggested utilizing the nation’s surplus energy to power Bitcoin mining operations during the inaugural meeting of the Crypto Council in March. The meeting was attended by government officials, the governor of Pakistan’s central bank, the chairman of the Securities and Exchange Commission, and the federal information technology secretary.
Related: Can Bitcoin fix Pakistan’s energy problem? The 2,000 megawatt mining strategy explained
Pakistan Aims for DeFi Gains to Increase Bitcoin Holdings
Saqib announced strategies for establishing a national Bitcoin reserve during the Bitcoin 2025 conference. He stated that discussions with MicroStrategy’s Michael Saylor further strengthened his belief in this initiative.
Saqib also indicated that the nation plans to increase its Bitcoin holdings by leveraging returns generated from decentralized finance (DeFi) platforms.
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