Key Takeaways
- The IMF has formally rejected Pakistan’s proposal to offer subsidised electricity for Bitcoin mining.
- The fund has cited legal and infrastructure concerns.
- Even with a proposed subsidized rate of $0.09/kWh, mining costs would still lag behind competitive regions.
Pakistan’s efforts to position itself as a player in the global Bitcoin mining industry are facing early headwinds .
A government proposal to offer subsidized electricity for crypto mining has been met with resistance from the International Monetary Fund (IMF) , which raised concerns over its economic and regulatory implications.
IMF Rejects Pakistan’s Plan for Subsidised Bitcoin Mining Tariffs
The International Monetary Fund (IMF) has rejected Pakistan’s proposal to offer subsidized electricity rates for Bitcoin mining.
The fund has cited concerns over legal ambiguity and potential strain on the country’s fragile power infrastructure.
Secretary of Power Fakhre Alam Irfan confirmed to the Senate Standing Committee on Power that “as of now, the IMF has not agreed” to the initiative, which sought to allocate 2,000 MW of surplus electricity to power mining farms and data centers.
The plan, spearheaded by the Pakistan Crypto Council and supported by the Ministry of Finance, aimed to attract foreign investment.
However, the IMF flagged issues related to market distortions, resource distribution, and the legality of crypto mining under existing Pakistani laws.
Officials also pointed out that the fund was not consulted before the proposal’s public announcement.
High Energy Costs Undermine Mining Viability
While Pakistan officially legalized Bitcoin mining in May and offered up surplus energy, high commercial electricity rates make mining financially unviable under current conditions.
Industrial electricity in the country costs between Rs. 62.47 and Rs. 71.06 per kWh, or roughly $0.22, nearly ten times more than the off-peak industrial rates in Texas, USA.
Mining one Bitcoin in Pakistan at those rates would cost approximately $132,000—well above the global average and current BTC rates.
Regulatory Gaps and Grid Fragility Raise Further Risks
Beyond pricing, Pakistan’s weak electricity grid presents significant operational risks.
High transmission losses, inconsistent supply, and regional disparities make the environment challenging for an industry that relies on uninterrupted power.
While the government recently introduced customs duty exemptions on imported mining equipment, regulatory clarity remains lacking.
The IMF remains cautious, especially as blanket energy subsidies contradict Pakistan‘s commitments to the fund.
Industry stakeholders argue that long-term competitiveness hinges on more than just cheap electricity.
Targeted infrastructure upgrades, regulatory certainty, and a shift toward renewable energy are essential to making Pakistan a credible player in global crypto mining.
