IMF Rejects Pakistan’s Subsidized Power Plan for Bitcoin Mining
IMF denies Pakistan's 2,000 MW crypto power subsidy, citing grid strain, legal risks, and market distortion.
- IMF rejects Pakistan’s plan to offer subsidized electricity for Bitcoin mining.
- Concerns include grid pressure, legal uncertainty, and market distortion.
- Pakistan engages global institutions to reshape the proposal.
The International Monetary Fund (IMF) has turned down Pakistan’s proposal to allocate 2,000 megawatts of subsidized electricity for Bitcoin mining and AI data centers. The IMF expressed concerns about the strain this could place on Pakistan’s already fragile power infrastructure, as well as the legal ambiguity surrounding crypto mining in the country. Officials warned that such targeted subsidies could lead to unfair market advantages and potentially destabilize electricity pricing.
Strain on Infrastructure & Legal Risks
According to government sources, the IMF warned that diverting power for mining could disrupt the country’s energy balance and lead to wider tariff implications. The legal framework for cryptocurrency in Pakistan is still in development, raising additional red flags. The IMF has previously discouraged sector-specific concessions, arguing they could resemble harmful tax holidays that disrupt economic parity. Notably, a similar attempt in 2024 to offer electricity at marginal cost for six months did not result in any uptake.
Government Seeking Alternatives
Despite the IMF’s objections, Pakistan is still exploring ways to support its digital economy ambitions. Discussions are ongoing with global partners like the World Bank to find a revised model that aligns with economic and legal standards. The government is determined to use surplus electricity to power blockchain innovation and AI expansion while ensuring compliance with international guidelines.
Pakistan’s Broader Crypto Push
Earlier in 2025, Pakistan announced plans to build a national Bitcoin reserve and develop regulatory infrastructure with support from global crypto leaders. The country aimed to become a regional hub for blockchain technology, allocating significant energy resources to support this vision. However, balancing these ambitions with infrastructure capacity and fiscal responsibility remains a key challenge.
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