IMF opposes Pakistan’s proposal to subsidize electricity for crypto mining.
Concern centers on market distortions and energy shortages.
Experts warn of long-term risks to Pakistan’s power sector.
Pakistan’s government recently proposed offering discounted electricity rates to attract Bitcoin mining operations. However, the International Monetary Fund (IMF) firmly rejected this move. The IMF says that subsidized power for crypto miners could distort energy markets, strain supply, and destabilize the power sector.
Market Distortions and Supply Risks
Subsidies could drive up demand from power-intensive mining operations—potentially at the expense of residential and industrial consumers. Analysts warn such policies often lead to blackouts and higher operational costs across the energy grid, pushing expenses onto the broader public and commercial sectors.
NEW: IMF rejects Pakistan's plan to use subsidized electricity for Bitcoin mining, warning it could destabilize the energy market. pic.twitter.com/GtJQppSnEG
— Cointelegraph (@Cointelegraph) July 4, 2025
Long-Term Energy Sector Threats
Beyond immediate shortages, there’s growing concern about investment diversion. With cheap power attracting crypto ventures, essential infrastructure and renewable energy projects may suffer. The IMF warns this could weaken Pakistan’s ability to fund reliable and sustainable energy solutions in the future.
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