Catenaa, Monday, July 07, 2025-The International Monetary Fund has rejected Pakistan’s bid to offer subsidised electricity to cryptocurrency miners, casting doubt on the country’s recent push to position itself as a digital asset hub.
Power Secretary Fakhray Alam Irfan told lawmakers on Wednesday that the IMF declined support for the proposed marginal-cost tariff package aimed at heavy industries such as crypto mining.
The IMF warned that such sector-specific subsidies risk distorting markets and straining Pakistan’s fragile power grid, already burdened by over $4.5 billion in circular debt.
The proposal, which included discounted electricity at $0.08 per kilowatt-hour, was designed to boost winter usage of surplus capacity and reduce fixed payments to idle power producers.
But the IMF, citing parallels with tax holidays that have previously destabilised sectors, rejected the plan for a second time following a similar decision in November.
The setback comes amid Pakistan’s broader embrace of cryptocurrency, including the creation of a national Bitcoin reserve and the appointment of Bilal Bin Saqib as blockchain advisor to the prime minister. However, the government failed to consult the IMF prior to allocating 2,000 megawatts for crypto mining and AI centers, triggering further concerns in Washington and Geneva.
Analysts say crypto may still deliver economic value, but only if pursued within a sustainable and inclusive framework. Proposals to tap hydropower and solar farms have been floated as longer-term solutions, but for now, Pakistan’s crypto energy ambitions face a significant regulatory roadblock.
