The post Pakistan’s subsidized Bitcoin mining power plan bumps into IMF redtape appeared on BitcoinEthereumNews.com.

The International Monetary Fund (IMF) rejected Pakistan’s proposal to offer discounted electricity rates to Bitcoin mining ventures and other energy‑intensive industries, raising concerns over potential market distortions, grid strain, and fiscal risks. The government has not yet finalized the plan, and is still seeking advice from international organisations, local reports said. The development was confirmed during the Senate Standing Committee on Power meeting, where Secretary of Power Dr. Fakhray Alam Irfan stated that the IMF has not approved the proposal. IMF raises some objections to Pakistan’s proposal The IMF raised a red flag about the plan, saying it may inflict more stress on the power sector. Dr. Irfan informed the committee that the agency is worried about market disruptions related to Pakistan’s plan for subsidized energy rates.  This was after the IMF questioned Pakistan’s push for power in Bitcoin mining last month, warning of legal and power utilization issues. The global financial authority also listed several other concerns, such as the legality of mining crypto in Pakistan and further pressure on the overloaded power system. In addition, the fund cautioned about resource allocation and its impact on electricity prices.   In May, Pakistan declared that it would dedicate 2,000MW of power to support crypto mining and data centers as a strategy to entice foreign investment. The Pakistan Crypto Council leads the initiative, with backing from the Finance Ministry. The IMF said Pakistan did not engage with the fund before announcing the plan. Meanwhile, Dr Irfan said that despite the IMF turning down the proposal earlier,  the government is still negotiating with the regulatory body to revise its power subsidiary plan. Concerning the committee’s discussion, they also tackled the topic of technological measures that can help stop electricity theft.  Notably, the government recently made a deal with scheduled banks to lower the amount…

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Filed under: News - @ July 3, 2025 1:21 pm