The International Monetary Fund (IMF) has rejected Pakistan’s bid to offer subsidised electricity to Bitcoin mining operations, dealing a significant blow to the nation’s bold plans to become a regional crypto hub shortly after its high-profile debut of its first strategic Bitcoin reserve.
While testifying before the Senate Standing Committee on Energy on Thursday, Secretary of Power Dr. Fakhray Alam Irfan said that the IMF was concerned about creating market distortions.
The government had proposed allocating 2,000 megawatts from its 7,000 MW electricity surplus to cryptocurrency mining and other energy-intensive industries at rates of 23-24 Pakistani rupees ($0.08) per kilowatt-hour (kWh). But, the IMF remains skeptical despite surplus power during winter months, cautioning that such incentives resemble tax holidays that have historically undermined market efficiency.
“As of now, the IMF has not agreed,” Irfan told lawmakers, suggesting that the project hasn’t been shelved entirely and is under review by the World Bank and other international partners.
The IMF has raised red flags about how the government would transition the subsidized electricity back to market rates and contended that similar initiatives had previously failed to yield results.
Pakistan’s Pivot Toward Crypto
The development follows Pakistan’s creation of a “National Crypto Council” to oversee the formulation of a comprehensive regulatory framework for cryptocurrencies and to lure in foreign investors. The newly formed council tapped former Binance CEO Changpeng Zhao as strategic advisor.
Pakistan’s crypto embrace also includes the announcement of a strategic Bitcoin reserve.
Speaking at the Bitcoin 2025 conference in May, Pakistan Crypto Council CEO Bilal Bin Saqib revealed that the government followed the United States’ example in establishing a Bitcoin strategic reserve and is embracing pro-crypto regulatory policies. Saqib promised that the country would “never, ever sell” its holdings of the flagship cryptocurrency.
Nonetheless, it’s still unknown how many Bitcoins the country plans to hold, and whether these assets will be bought or acquired via other means.
