The International Monetary Fund (IMF) did not support the Pakistani government’s proposal to reduce electricity tariffs for cryptocurrency miners and other participants in this sector. The organization expressed concerns about the state of the country’s energy sector and believes that providing subsidies could exacerbate the current crisis.
This is reported by Finway
IMF Concerns and Reduction of the Subsidy Period
The issue was discussed during a meeting of the Senate’s Standing Committee on Energy, which included Energy Minister Dr. Fakhraya Alam Irfan. According to him, the IMF recommends that Pakistan refrain from funding infrastructure development for miners and from attracting new contractors in this area. The organization pays particular attention to the fact that any relaxation of tariffs could only worsen the energy crisis in the country.
“The IMF is concerned about the overall state of the country’s energy sector and believes that providing subsidies could deepen the crisis.”
In September 2024, the Pakistani Ministry of Energy proposed a six-month tariff package for several sectors, including cryptocurrency mining, with a calculated rate of 23-24 rupees ($0.08) per 1 kWh. However, the IMF opposed prolonged subsidies, resulting in the subsidy period being reduced to three months.
Excess Electricity and Future Plans
In November 2024, the Pakistani authorities proposed introducing subsidies as a step to stimulate the use of excess electricity. However, this plan also did not receive the IMF’s support due to economic risks, as such “tax holidays” could negatively impact the country’s financial stability.
Despite the IMF’s position, the Pakistani government continues to collaborate with stakeholders and plans to expand measures to combat electricity theft. In May 2025, the authorities announced the allocation of an additional 2000 MW of excess electricity for the development of mining and artificial intelligence, but this step was also criticized by the IMF due to potential negative consequences for the market.
Furthermore, Pakistan is considering the establishment of its own strategic Bitcoin reserve, following the example of the United States, which underscores the country’s interest in developing digital financial technologies despite warnings from international financial institutions.