Pakistan’s Bitcoin Mining Drive Stalls as IMF Rejects Power Subsidies

Situation Overview

In September 2024, Pakistan’s Power Division proposed offering subsidized electricity at ~Rs 22–23/kWh (~USD 0.08/kWh) to crypto mining, data centers, and energy-intensive industries to utilize surplus power 

The IMF objected—citing that this would distort the power market and resemble sector-specific tax holidays—and approved only a truncated three-month pilot instead of the full six-month plan 

Why IMF Rejected the Plan
Market distortion concerns: Subsidizing electricity for niche sectors could upset pricing balance and destabilize the fragile energy infrastructure CointelegraphDecrypt.

Lack of prior consultation: Officials acknowledged the IMF was not consulted before the public launch, deepening governance concerns 

Current Status
The 2,000 MW electricity allocation—announced in May 2025 for crypto and AI infrastructure—is now in limbo, pending international approval and plan revision 

Secretary of Power Dr. Fakhray Alam Irfan stated that although the proposal hasn’t been shelved, it remains under review by institutions like the World Bank

Without IMF sign-off, the government cannot proceed with subsidized pricing to attract miners or data firms.

Implications for Pakistan’s Crypto Strategy

The Pakistan Crypto Council—led by Bilal Bin Saqib—has pitched the mining initiative to convert surplus electricity into foreign exchange and tech investment 

However, the rejection delays ambitious objectives such as building a Strategic Bitcoin Reserve and incentivizing foreign mining firms 

The core issue now is balancing fiscal discipline, power sector integrity, and crypto-forward policy without undermining IMF-backed reforms.

Looking Ahead
Pakistan is engaging with the IMF and World Bank to revise the structure, possibly seeking alternative tariff designs that are more broadly consistent with fiscal norms Reuters.