IMF rejects Pakistan’s subsidized power plan for Bitcoin mining due to market risks but Pakistan refines its strategy with global partners.
Pakistan aims to boost digital growth by allocating 2,000 MW for crypto mining and AI centers, supported by tax breaks and duty exemptions.
Grid challenges and unclear regulations remain major hurdles despite incentives, requiring upgrades and renewable energy shifts for success.
According to Bitcoin Archive on X, Pakistan's proposal to use 2,000 megawatts of excess electricity for AI data centers and Bitcoin mining has suffered a setback. Citing worries about market distortion and threats to the nation's vulnerable energy industry, the International Monetary Fund (IMF) rejected the idea. Despite this, Pakistan is moving forward with its digital transformation plan, and it is improving with help from international financial organizations.
IMF Flags Energy Market Concerns
The plan offered electricity at a low price of 22–23 Pakistani rupees per kilowatt-hour. It wanted to attract businesses like Bitcoin miners and data centers by using extra electricity, especially in winter. But the IMF said the special pricing has caused economic problems in the past.
According to Secretary of Power Fakhre Alam Irfan, the IMF warned that subsidized power could undermine energy reforms and weaken the national grid. The fund also stressed that all energy policies must first pass its approval. Consequently, the original plan now awaits further review by the World Bank and other stakeholders.
Pakistan Pushes Forward with Crypto Vision
Despite the IMF’s rejection, Pakistan has not shelved the plan. Instead, it continues to refine the proposal under the guidance of key international partners. In May, the Ministry of Finance and the Pakistan Crypto Council earmarked 2,000 megawatts for digital infrastructure. Finance Minister Muhammad Aurangzeb also introduced tax incentives for AI hubs and duty exemptions for crypto mining gear.
Saqib, a key figure behind the initiative, earlier proposed using unused energy for mining at the Crypto Council’s March meeting. He later announced a national Bitcoin reserve at the Bitcoin 2025 conference. Moreover, he revealed that Pakistan plans to grow its Bitcoin holdings via yield-generating DeFi protocols.
Key Infrastructure Challenges Remain
However, experts say cheap power alone is not enough. Pakistan’s outdated grid faces high transmission losses and inconsistent delivery. Additionally, the country lacks regulatory clarity for mining operations.
Therefore, focused grid upgrades, defined policy frameworks, and a shift to renewable energy are essential for long-term success. Industry participants say that these elements will decide if Pakistan emerges as a serious competitor in the global Bitcoin mining market.
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