- IMF rejects power subsidy plan impacting Pakistan’s crypto mining ambitions.
- Potential strain on Pakistan’s electricity grid prompted IMF’s decision.
- No immediate crypto market impacts observed post-IMF rejection.
The IMF’s stance impacts Pakistan’s strategic efforts to become a regional hub for cryptocurrency mining. The decision halted plans to allocate 2,000 megawatts of surplus power, with the potential to attract foreign investment into the sector.
Pakistan’s proposal aimed to offer reduced electricity tariffs of 22–23 PKR per kWh, approximately $0.08. Fakhre Alam Irfan confirmed the IMF’s decision during a Senate briefing, highlighting ongoing discussions with other financial institutions like the World Bank.
Experts indicate this decision may deter immediate foreign investment and technological growth in Pakistan’s nascent crypto mining industry. However, the broader cryptocurrency market remains largely unaffected by this policy development.
Fakhre Alam Irfan, Secretary of Power, Government of Pakistan, “As of now, the IMF has not agreed.” Source
Fakhre Alam Irfan emphasized the proposal’s refinement, seeking endorsement from other international lenders. Prior attempts, including a strategic Bitcoin reserve plan, have not revealed immediate changes in global market dynamics.
Looking forward, there is potential for Pakistan to restructure its electricity subsidy plans, engaging with other multilateral lenders to assess viable paths for the crypto mining sector. Such outcomes will rely on economic health and infrastructure resilience.
