Pakistan’s plan to use excess electricity for crypto mining struck a roadblock after the International Monetary Fund (IMF) reported that a proposal to offer subsidized power over intensive energy industries, including Bitcoin miners.
Pakistan Power Secretary Fakhre Alam Irfan told the Senate Committee on Energy that the IMF claimed such steps could ruin the energy market and existing issues in the country’s fragile sector, According to In a report from Urdu-Language News Outlet Independent Urdu.
Although Pakistan has excess electricity, especially in the winter, the IMF remains concerned that pricing schemes can interfere with market balance, each report. IRFAN said all significant energy policies should be approved by the IMF.
November 2024’s Power Division plan suggested a marginal-cost tariff 22-23 Pakistani Rupees (about $ 0.08) per kilowatt-hour for industries such as copper smelting, data center, and crypto mining. Officials argue that the procedure will boost electricity demand and help absorb excessive capacity.
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IMF noted the risk of economic imbalance
The IMF has reportedly deleted the plan, comparing it to sectors of specific tax breaks with history that created economic imbalance in Pakistan, the report said.
IRFAN noted that the proposal has not been fully recorded and reviewed by the World Bank and other international partners. He said the government was working on refining the plan with input from these institutions.
The cointelegraph reached the IMF to comment but did not receive a response through the publication.
In May, Pakistan Already exploding 2,000 megawatts of excess electricity for bitcoin (Btc) Mining centers and AI as part of an initiative in the transformation of the digital led by the Pakistan Crypto Council and supported by the Ministry of Finance.
At this time, financial minister Muhammad Aurangzeb announced tax incentives for AI centers and duty exceptions for Bitcoin miners to attract investors.
Saqib first suggested With the country’s runoff energy In Fuel bitcoin mining At the inaugural meeting of the Crypto Council in March. The meeting included lawmakers, the governor of the Bank of Pakistan, the chairman of Pakistan’s Securities and Exchange Commission and the secretary of Federal Information Technology.
Related: Can Bitcoin fix Pakistan’s energy problem? Explained 2,000 Megawatt mining approach
Pakistan Defi’s eyes yield to grow the Bitcoin reserve
Saqib announces plans for a National Bitcoin Reserve During the Bitcoin 2025 conference, announced that a discussion with the Michael Saylor of the approach has reaffirmed his conviction of the move.
Saqib also told the country Intended to expand its Bitcoin handles With the yield formed by decentralized financial protocols.
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