Pakistan's Crypto Mining Plans Stalled By IMF

Pakistan's initiative to utilize surplus electricity for cryptocurrency mining has encountered obstacles after the International Monetary Fund (IMF) rejected a proposal for subsidized power for energy-intensive sectors, including Bitcoin mining. According to Fakhre Alam Irfan, Pakistan's Secretary of Power, the IMF expressed concerns that such subsidies could disrupt the energy market and exacerbate issues in the country's already fragile power sector. Despite having excess electricity, especially in winter, the IMF fears that pricing strategies could upset market equilibrium. The Power Division's plan suggested a marginal-cost tariff of 22–23 Pakistani rupees (approximately $0.08) per kilowatt-hour for industries like crypto mining, aiming to increase electricity demand and utilize surplus capacity. However, the IMF likened this proposal to previous sector-specific tax breaks that led to economic imbalances. Irfan mentioned that the proposal is still under consideration by the World Bank and other partners, as the government seeks to refine it with their input. Read more AI-generated news on: https://app.chaingpt.org/news