**“IMF Pushes Back on Pakistan’s Crypto Mining Power Subsidies Amid Economic Strain”**

In a recent blow to Pakistan’s digital ambitions, the **International Monetary Fund (IMF) has firmly rejected a government proposal to subsidize electricity tariffs** for energy-intensive industries—including **cryptocurrency mining**. The decision comes amid ongoing bailout talks and mounting pressure on Pakistan to reduce its fiscal deficit.

The proposal, aimed at boosting local industries such as textile manufacturing, heavy industry, and blockchain-based data centers, included provisions that would have **offered discounted power rates** to selected sectors. Among them was crypto mining, which has been quietly growing in the country despite regulatory uncertainty and infrastructure limitations.

However, the IMF, citing **macroeconomic discipline and energy sector reforms**, refused to approve any measure that could increase Pakistan’s circular debt or contradict previous subsidy rationalization commitments. The Fund’s stance reflects a broader concern: **public money should not support speculative sectors**, particularly in a country still grappling with inflation, forex volatility, and energy shortfalls.

Crypto mining, in particular, has come under scrutiny due to its high electricity consumption and lack of tax contribution. With frequent power outages and rising fuel imports, critics argue that **mining crypto while citizens face blackouts is politically untenable**.

Despite this, Pakistan has shown intermittent interest in blockchain technology. Provinces like Khyber Pakhtunkhwa previously explored **state-backed mining projects**, and private miners have operated informally, often off-grid. But without subsidies or a legal framework, **Pakistan’s crypto mining sector now faces an uncertain future**.

Analysts believe Pakistan must balance innovation with fiscal responsibility. “Subsidies for crypto mining send the wrong signal,” one economist noted. “What’s needed is a **transparent policy**, not shortcuts.”