The International Monetary Fund (IMF) has rejected Pakistan's proposal to support subsidized electricity for cryptocurrency mining activities and other high electricity-consuming industries.
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The IMF rejected the proposal for a subsidized 2,000 MW electricity plan for cryptocurrency mining in Pakistan.
The Pakistani government continues to negotiate with international organizations to adjust its energy plan.
The issue of electricity theft and subsidies is being prioritized by the government to enhance technological solutions.
Pakistan was denied the plan to provide 2,000 MW of subsidized electricity for cryptocurrency mining.
According to a statement from the Secretary of the Ministry of Energy of Pakistan, Dr. Fakhray Alam Irfan, the IMF disagreed with the plan to provide cheap electricity for cryptocurrency mining and energy-intensive industries, due to concerns about market distortion. This plan, aimed at attracting foreign investment, was completely rejected by the IMF.
This result shows that the IMF still maintains its stance against subsidizing electricity for high energy-consuming activities, despite the fact that winter usually has a surplus of electricity in Pakistan. Mr. Irfan confirmed that the government remains committed to adjusting its energy strategy to meet international standards.
There is currently no consensus from the IMF regarding the provision of cheap electricity for cryptocurrency mining, reflecting concerns about the negative impact on the energy market and the national economy.
Dr. Fakhray Alam Irfan, Secretary of the Ministry of Energy of Pakistan, 3/7/2025
The Pakistani government continues to negotiate with international organizations to restructure its energy policy.
Dr. Irfan stated that the Pakistani government is in discussions with several international partners to realign the electricity subsidy policy after the IMF rejected the proposal. At the same time, technological solutions to combat electricity theft, a serious issue in this country, are also actively being discussed.
The meeting with the Energy Committee of the National Assembly of Pakistan also addressed the agreement with commercial banks to reduce the revolving debt by up to 1,275 trillion Rupees, while there are still many reflections on the pressures of borrowing against financial institutions.
Electricity theft prevention technology is prioritized for implementation.
Notably, more than 58% of electricity users in Pakistan are receiving a subsidized price of only 10 Rupees per unit of electricity, much lower than the government's standard price. To cope with large-scale electricity losses, the government plans to spend 250 billion Rupees on subsidies and promote the application of energy security technologies.
The Energy Committee has requested the Ministry of Energy to present a comprehensive report on solutions before the next meeting, to closely monitor this issue.
Electricity theft increases the financial burden on the energy sector, which requires the application of modern security technology to enhance management efficiency and reduce losses.
Dr. Fakhray Alam Irfan, Secretary of the Ministry of Energy of Pakistan, 3/7/2025
Frequently Asked Questions
Why did the IMF refuse to subsidize electricity for cryptocurrency mining in Pakistan? The IMF is concerned that subsidies would distort the energy market and affect the national economic balance. What are the current plans of the Pakistani government after being rejected by the IMF? Pakistan is negotiating with international organizations to adjust its electricity subsidy policy to meet global standards. How does electricity theft in Pakistan affect the electricity sector? Electricity theft increases operational costs, causing significant financial losses, leading the government to enhance loss prevention technology. How much electricity subsidy does Pakistan plan to provide this year? The government plans to spend 250 billion Rupees on subsidies and improving the electricity distribution system. What benefits do the people of Pakistan receive from the current electricity subsidy policy? More than 58% of electricity users benefit from lower electricity prices than the standard, helping to reduce living and production costs.
Source: https://tintucbitcoin.com/imf-bac-de-xuat-khai-thac-crypto-pakistan/
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