IMF Vetoes Pakistan's 2,000 MW Crypto Mining Subsidy Proposal

The International Monetary Fund (IMF) has officially rejected Pakistan's proposed plan to provide subsidized electricity rates for cryptocurrency mining operations, data centers, and heavy industries. The decision was confirmed on July 3 by Secretary Power Dr. Fakhray Alam Irfan during a Senate Standing Committee on Power meeting chaired by Senator Mohsin Aziz.

During the session, Dr. Irfan revealed that while Pakistan has surplus electricity capacity during winter months, the IMF maintains a firm opposition to the subsidy proposal. The IMF expressed concerns about potential market distortions that could arise from offering preferential rates to energy-intensive sectors including crypto mining, data centers, and metal industries.

Pakistan's ambitious plan to allocate 2,000 megawatts of electricity specifically for cryptocurrency mining, intended to attract foreign investment, now faces significant hurdles. "As of now, the IMF has not agreed," Dr. Irfan stated, while indicating that Pakistan remains committed to revising its energy strategy in line with international standards.

The government continues negotiations with international financial institutions to reformulate its power subsidy framework following the IMF's rejection. The committee also addressed Pakistan's ongoing electricity theft crisis and reviewed recent agreements with scheduled banks to address the nation's Rs. 1.275 trillion circular debt.

Power sector reforms were another key discussion point, with plans to distribute Rs. 250 billion in subsidies this year and implement advanced anti-theft technologies across the national grid. The committee has requested the power division to present comprehensive solutions to these challenges at their next meeting.