Key Takeaways:
- The IMF has blocked Pakistan’s proposal to offer subsidized electricity to Bitcoin miners, citing economic risks.
- The plan is still under review by the World Bank and other partners, with no final decision yet.
- Pakistan’s crypto pivot includes a national Bitcoin reserve and DeFi strategies to generate digital yield.
Pakistan’s ambitious plan to harness its surplus electricity for crypto mining—particularly Bitcoin—has encountered a major obstacle. The International Monetary Fund (IMF) has reportedly rejected a government proposal to offer subsidized power to energy-intensive sectors, including Bitcoin mining operations.
IMF Opposes Subsidized Power for Miners
According to Secretary of Power Fakhre Alam Irfan, the IMF cautioned that subsidizing power for industries like crypto mining could distort the country’s energy market. The proposal had suggested offering electricity at 22–23 Pakistani rupees (approximately $0.08) per kilowatt-hour to mining firms, data centers, and copper smelting plants.
While Pakistan does experience a seasonal surplus in electricity—especially during winter months—the IMF argued that such targeted pricing mechanisms could increase economic imbalances, a problem it likened to past tax breaks that disrupted Pakistan’s fiscal landscape.
Plan Under Review by World Bank, Other Institutions
Despite the IMF’s disapproval, Irfan clarified that the plan is not entirely off the table. Discussions are ongoing with the World Bank and other international partners to explore possible refinements. Any major power policy will ultimately need IMF approval due to the country’s ongoing reliance on financial support from the institution.
The initial plan, unveiled in November 2024, was part of a broader digital transformation effort led by the Pakistan Crypto Council in partnership with the Ministry of Finance. The government had already earmarked 2,000 megawatts of power for AI and Bitcoin mining initiatives.
Bitcoin Reserve and DeFi Yields in Focus
In a related move, Pakistan’s crypto strategy has evolved beyond mining. At the Bitcoin 2025 conference, Saqib—an influential voice in the Crypto Council—announced plans for a national Bitcoin reserve. He revealed that conversations with MicroStrategy’s Michael Saylor had strengthened his belief in Bitcoin’s role in national strategy.
Also Read: Binance Founder Joins Pakistan’s Crypto Push
Pakistan also intends to grow its Bitcoin holdings by leveraging decentralized finance (DeFi) protocols to earn yield, potentially opening up a new frontier for state-level participation in crypto finance.
While the IMF’s rejection has slowed Pakistan’s subsidized crypto mining efforts, the country’s broader vision for digital asset integration—via Bitcoin reserves and DeFi yields—remains intact. As the plan undergoes further scrutiny, Pakistan’s leaders continue to balance innovation with the requirements of global financial institutions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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