IMF Rejects Pakistan’s Crypto Mining Power Subsidies

The International Monetary Fund (IMF) has rejected Pakistan’s proposals to offer subsidized electricity tariffs for crypto mining and other energy-intensive industries, citing concerns over market distortions, strain on the power grid, and legal uncertainties related to crypto activities. Pakistan had planned to allocate 2,000 megawatts of surplus electricity to Bitcoin mining and AI centers as part of efforts to attract foreign investment and support a digital transformation initiative. The IMF likened the proposed subsidies to selective tax holidays, warning that such measures could undermine market efficiency and exacerbate economic imbalances. Despite the IMF's objections, Pakistan continues discussions with the World Bank and other partners to refine its energy strategy. The government has highlighted the potential for crypto and blockchain technologies to improve financial inclusion for the unbanked population. The IMF’s rejection is a setback for Pakistan’s ambitions to leverage surplus electricity for economic growth through crypto and digital technologies.