According to recent reports, the International Monetary Fund has turned down Pakistan's proposal to provide subsidized power to bitcoin mining operations and other energy-intensive industries. This decision was disclosed by Secretary of Power Dr. Fakhray Alam Irfan during a session with the Senate Standing Committee on Power. The Pakistani government had initially planned to allocate 2,000 megawatts of its surplus electricity to crypto mining at a rate of 23-24 Pakistani rupees ($0.08) per kilowatt-hour.
However, the IMF expressed concerns that such incentives could lead to market distortions and undermine efficiency. The IMF also questioned the government's strategy for transitioning the subsidized electricity back to market rates, citing the failure of similar concessions in the past. Originally proposed as a six-month package in September 2024, the plan was later scaled back to three months due to IMF pressure, and a follow-up proposal in November was also rejected.
Dr. Irfan noted that the government is still in discussions with international institutions to refine the plan.
The Pakistani government's interest in bitcoin mining and establishing a strategic bitcoin reserve was first announced in May, inspired by similar plans in the US. The Minister of State for Blockchain and Crypto emphasized the potential of crypto and blockchain to empower the 100 million unbanked Pakistanis and help them break free from their economic constraints.
"We want them to transcend their economic classes, and I firmly believe that crypto and blockchain can facilitate this quantum leap," said Bin Saqib at the Bitcoin 2025 conference in Las Vegas.