IMF Rejects Pakistan’s Bid to Subsidise Power for Crypto Mining
The International Monetary Fund (IMF) has rejected Pakistan's proposal to subsidize electricity tariffs for crypto mining operations, hindering the country's plans to become a regional crypto hub. The IMF cited concerns over market distortions in an already strained power sector, which has a circular debt exceeding $4.5 billion. Despite Pakistan's Power Division proposing a targeted electricity package for crypto mining at $0.08-0.081 per kilowatt-hour, the IMF only approved a shorter three-month plan, emphasizing the need for sustainable energy practices. The rejection follows Pakistan's recent initiatives to enhance its crypto landscape, including the establishment of the Pakistan Crypto Council and the appointment of key advisors. Concerns over energy shortages and fiscal risks have also been raised due to plans to allocate 2,000 megawatts for Bitcoin mining and AI data centers without IMF consultation. Experts suggest a more sustainable approach to energy consumption for crypto activities.
