The International Monetary Fund (IMF) has rejected Pakistan’s proposal to allocate 2,000 MW of surplus energy to Bitcoin mining at subsidized rates, citing a risk of market distortion.
The IMF refuses Pakistan’s plan to use its energy surplus for Bitcoin mining
Pakistan wanted to harness a portion of its excess energy to mine cryptocurrencies on a large scale. However, the IMF recently shut down this idea: no subsidies for mining or other electricity-intensive industries.
2,000 megawatts for mining? Not happening.
The Pakistani government planned to allocate 2,000 MW from its 7,000 MW surplus to the mining industry at a preferential rate of 23 to 24 Pakistani rupees per kilowatt-hour, around $0.08.
But for the IMF, this strategy could artificially destabilize the market. Massive subsidies create distortions and are unsustainable in the long run. The challenge lies in returning to normal prices after getting the industry used to cheap electricity.
A project rejected multiple times
The initial plan unveiled in September 2024 proposed a temporary ‘marginal tariff’ over six months. Under IMF pressure, it was reduced to three months. In November, a renewed attempt was once again turned down.
Even today, despite ongoing discussions, the IMF’s stance remains firm. Pakistan cannot implement its plan without risking a halt in international aid and support.
Why the focus on Bitcoin?
Beyond mining, Pakistan aimed to go further. In May, the government announced intentions to build a strategic BTC reserve, following a similar crypto policy to that of Donald Trump in the US.
The goal is to provide access to savings and investments for over 100 million unbanked Pakistanis. ‘We want to break social barriers for them. And I truly believe that blockchain can help us advance,’ stated Bin Saqib, the state minister for the sector, at the Bitcoin 2025 conference in Las Vegas.
The IMF, guardian of fiscal orthodoxy
For the IMF, these ambitions seem like risky economic shortcuts. Heavily subsidizing such a speculative industry as crypto mining is a dangerous wager on public finances.
The message is clear: growth through crypto will not happen without fiscal discipline. And for Pakistan, still heavily reliant on IMF support, the margin for maneuver is narrow.
