The International Monetary Fund (IMF) has opposed Pakistan’s proposal to offer discounted electricity to crypto mining and data centers.
The plan aimed to use surplus winter electricity to support mining operations and digital infrastructure development across the country.
Pakistan’s Crypto Mining Plans Hit IMF Roadblock
Secretary Power Dr. Fakhray Alam Irfan told lawmakers that the IMF strongly objects to targeted subsidies of any kind, including for crypto mining.
Despite the rejection, the proposal is currently under review by the World Bank and other international lending institutions.
The initiative was part of Pakistan’s broader strategy to build national Bitcoin reserves and attract tech investments.
The government had allocated 2,000 megawatts of electricity for crypto mining and AI-powered data centers.
Backed by the Pakistan Crypto Council (PCC), the move aimed to use excess energy, especially during off-peak winter months. Officials expected it to generate employment in the tech sector while also inviting foreign capital to the country.
IMF Concerns Raise Questions Over Crypto Mining Subsidies in Pakistan
The IMF cited legal and logistical issues tied to subsidized power for crypto mining and digital centers.
Concerns were raised about pressure on the national power grid and how resource distribution could affect consumer electricity tariffs.
The IMF also criticized Pakistan for launching the crypto mining initiative without first consulting key international lenders.
Observers say this disagreement could stall the country’s ambitions for creating a national Bitcoin reserve.
Pakistan’s crypto sector has seen increased government involvement in 2025, especially under the Pakistan Digital Assets Authority (PDAA).
Earlier this year, Pakistan unveiled new crypto regulations in a move to formalize digital asset use and ensure regulatory oversight.
Despite that, global financial institutions remain cautious about crypto mining projects that rely on public infrastructure and state funding.
Public and Political Reactions to the Crypto Mining Proposal
Senators criticized the government for poor communication and transparency regarding the crypto mining energy allocation plan.
Some lawmakers voiced concern over a Rs. 1.275 trillion circular debt agreement between banks and the power sector.
One of the senators claimed that banks were under pressure to seal the agreement, yet the Power Secretary refuted the claims. He assured that there are no new taxes in addition, and there is also a subsistence campaign to reduce overbilling via the Apna Meter Apni Reading mobile application.
The app has seen over 500,000 downloads and will soon be available for users in K-Electric (KE) areas. Senators also slammed continued power outages in full-paying areas and alleged local officials demand bribes to restore electricity.
Dr. Irfan explained that load shedding is based on revenue collection, especially in areas with over 20 percent distribution losses.
Currently, 58 percent of power users receive subsidized rates, with Rs. 250 billion in energy subsidies set for this year.
With donor backing, Pakistan plans to scale up anti-theft technology to reduce losses and strengthen the national power infrastructure.
