The IMF rejected Pakistan’s proposal to use surplus electricity for Bitcoin mining, delivering a major blow to the country’s plan. The IMF believed that the project could disrupt the country’s vulnerable electricity market and harm the country in the long term.
Power Secretary Fakhre Alam Irfan told the Senate Committee that the IMF now approves all major energy-related decisions. The IMF did not appreciate the suggestion to provide electricity at marginal cost to industries such as Bitcoin mining, data centers, and copper smelting. These industries are electricity-intensive, and the IMF is concerned that the subsidies will disrupt market equilibrium and the infrastructure that is currently in place.
The Power Division floated a tariff range of 22–23 Pakistani rupees ($0.08) per kilowatt-hour in November 2024. The move is part of an attempt to attract investment, take advantage of the country’s winter surplus electricity, and push its overall digital economy. The ministry hoped that it would create employment opportunities, increase export volumes, and attract modern technology in the thriving tech industry in Pakistan.
IMF blocks subsidies for Crypto mining
The IMF reaction was no different from its position against sector-specific tax breaks that tend to cause uneven financial results in Pakistan. Irfan clarified that the proposal is still under consideration and is under review at the World Bank and other international institutions. He added that the government is now making the necessary adjustments and is still consulting with the international partners for a viable plan.
In May 2025, Pakistan reserved 2,000 megawatts of idle electricity for national Bitcoin mining and AI research activities. The Pakistan Crypto Council initiated a complete digital transformation drive, and the Finance Ministry approved the decision that followed. Finance Minister Muhammad Aurangzeb had also stated that Bitcoin mining corporations will remain tax and duty-exempt.
Crypto Council chairman Saqib previously floated the idea at a full council meeting in March. The council met with senior government officials, financial watchdogs, and technology ministry officials. Saqib then revealed at the Bitcoin 2025 conference that a national Bitcoin reserve is also in the offing in Pakistan and will be funded with the revenues raised from decentralized finance protocols.
Pakistan is still looking at the global crypto economy with hope. But the current rift with the IMF made the country rethink its future direction and find a steadier course that is aligned with economic stability and the larger economic goals.
