Pakistan Bitcoin Mining Plan in Limbo as IMF Rejects Power Subsidies: Report

Pakistan’s ambitious plan to enter the Bitcoin mining industry has hit a major roadblock as the International Monetary Fund (IMF) reportedly rejected proposals for power subsidies. The government had been exploring state-backed Bitcoin mining as a way to boost its struggling economy and generate foreign revenue. However, due to the country’s ongoing energy crisis and IMF loan conditions, the plan has stalled.

According to recent reports, Pakistani officials intended to provide subsidized electricity to mining operations in certain regions where power production exceeded local demand. The plan aimed to utilize surplus hydroelectric energy for crypto mining, especially in areas like Khyber Pakhtunkhwa. But the IMF, which is currently negotiating the next phase of Pakistan’s bailout package, has firmly opposed any new subsidies, particularly in the energy sector.

Analysts say the IMF’s stance stems from Pakistan’s existing fiscal challenges. The country has faced frequent power outages, mounting debt, and inflation, making it difficult to justify additional energy spending. Subsidizing electricity for mining could widen the budget deficit and increase pressure on the national grid.

Crypto experts in the country remain divided. Some argue that mining could offer long-term economic benefits and technological growth, while others warn of regulatory and environmental risks.

For now, Pakistan’s Bitcoin mining ambitions remain uncertain. Without international financial support or policy clarity, the dream of becoming a regional crypto mining hub may remain on hold. The decision reflects the complex balance between innovation and economic responsibility in developing economies.

#Pakistan #bitcoin #Mining #IMF

details: https://cointelegraph.com/news/pakistan-imf-rejects-crypto-power-subsidy-report