IMF blocks Pakistan’s plans to subsidise power for Bitcoin mining
2025-07-03 17:51:53
Main Idea
The IMF has blocked Pakistan's plans to subsidize electricity for Bitcoin mining, citing concerns over energy pricing discipline and potential economic risks, while Pakistan continues to pursue its ambitions to become a crypto hub.
Key Points
1. Pakistan is reviewing plans to establish a strategic Bitcoin reserve but faces backlash from the IMF over proposed electricity subsidies for Bitcoin mining.
2. The Power Division proposed a marginal-cost tariff of 22–23 Pakistani rupees per kilowatt-hour for Bitcoin mining to utilize surplus electricity capacity.
3. IMF officials are concerned that targeted incentives for Bitcoin mining could worsen energy pricing discipline and economic stability.
4. Pakistan's plans remain under review by the World Bank and other international partners, with any major changes requiring IMF clearance.
5. Despite IMF opposition, Pakistan is advancing its crypto ambitions, including sovereign Bitcoin reserves, with advisory support from industry leaders like Binance's Changpeng Zhao and Michael Saylor.
Description
Pakistan is facing backlash from the International Monetary Fund regarding its plan to channel surplus electricity into its cryptocurrency mining operations. Local media reports claim that Pakistan’s Secretary of Power, Fakhre Alam Irfan, has informed the Senate Standing Committee on Energy that the IMF has rejected the country’s proposal to offer subsidised electricity to energy-intensive industries, including Bitcoin mining. The Power Division’s plan, first floated in November 2024, proposed a...
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