The post Energy Crisis Deepens as IMF Opposes Pakistan’s Crypto Mining Incentive Plan appeared on BitcoinEthereumNews.com.

The International Monetary Fund (IMF) has dismissed Pakistan’s proposal to provide subsidised electricity rates for crypto mining operations, citing concerns about market distortions and further strain on the country’s already burdened power sector.  Ongoing Talks and IMF’s Concerns The IMF’s dismissal of the proposal marks another setback for the government’s bid to attract foreign investment through digital asset infrastructure projects. During a recent session of the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, Power Secretary Dr. Fakhray Alam Irfan confirmed that discussions with the IMF over the proposed tariff concessions are ongoing. He acknowledged that the IMF rejected the idea due to apprehensions about its potential to destabilise the power market and create fiscal imbalances. He claimed,  “The agency is concerned about market distortions over Pakistan’s subsidised energy rates proposal.” Dr. Irfan also added that the fund viewed the measure as a sector-specific incentive that could trigger broader economic imbalances. Details of the Proposal and IMF’s Response In September 2024, Pakistan’s Power Division tabled a plan to allocate 2,000 megawatts of electricity to data centres and crypto mining ventures, offering a six-month tariff package at a marginal rate of Rs 23 per kWh. However, the IMF only approved a scaled-back, three-month version at the time, flagging risks to market stability. By November, the government sought to introduce a targeted subsidy framework to encourage the use of surplus electricity by crypto mining and metal industries. This too was rejected, with the IMF warning it mirrored tax holidays that historically disrupt economic equilibrium. Last month, the IMF raised additional concerns, questioning the legality of large-scale Bitcoin mining in Pakistan and the potential strain such projects would place on the nation’s fragile power grid. The fund also criticised Islamabad for failing to consult with it prior to announcing its mining…

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Filed under: News - @ July 3, 2025 11:19 pm