Breaking: IMF Blocks Pakistan’s Plan to Subsidize Electricity for Bitcoin Mining

In a setback for Pakistan’s Bitcoin reserve plans, the IMF has rejected a proposal for subsidized electricity tariffs for Bitcoin mining. Secretary Power Dr Fakhray Alam Irfan posited that the IMF is firmly against targeted subsidies, even though Pakistan has surplus electricity during the winter months.

IMF Raises Objections to Pakistan’s Bitcoin Mining Plans

According to local reports, Pakistan’s Bitcoin mining plan has hit a roadblock, with the IMF raising concerns over the country’s proposal to offer discounted electricity to cryptocurrency miners. The IMF’s opposition to targeted subsidies for crypto mining remains firm, said Dr. Fakhray Alam Irfan, Secretary of Power. Now, the plan is being reviewed by the World Bank and other lenders.

As part of Pakistan’s Bitcoin reserve plans, the country decided to allocate 2,000 megawatts of electricity from the state grid to cryptocurrency mining and artificial intelligence data centers. Led by the Pakistan Crypto Council (PCC), a government-backed body, the initiative aims to boost tech employment, lure foreign investment, and utilize excess electricity, driving growth in the sector. The government stated,

Pakistan is uniquely positioned — both geographically and economically — to become a global hub for data centers. As a digital bridge between Asia, Europe, and the Middle East, Pakistan offers the most strategic location in the world for data flow and digital infrastructure.

Previously, CoinGape reported the possibility of the IMF’s increased scrutiny over Pakistan’s crypto initiatives, especially its Bitcoin Reserve. Notably, Bilal Bin Saqib, Head of the Pakistan Crypto Council, has been outspoken about the country’s cryptocurrency initiatives and the underlying motivations of the US.

Today is a very historic day. Today, I announce the Pakistani government is setting up its own government-led Bitcoin Strategic Reserve, and we want to thank the United States of America again because we were inspired by them.

Is this a Setback for Pakistan’s Bitcoin Reserve Plans?

Pakistan has been making initiatives for establishing a crypto-friendly atmosphere, especially driven by US President Trump’s pro-crypto stance. Earlier this year, the country launched the Pakistan Digital Assets Authority (PDAA) to ensure crypto regulatory compliance.

Earlier, in June 2025, Pakistan govt. released crypto crypto regulations to pave the way for national bitcoin reserve amid rising speculations of scrutiny by IMF.

Last month, the IMF expressed reservations about Pakistan’s plan to allocate power for Bitcoin mining, citing concerns over legal implications and potential strain on the power grid. The IMF also warned about the potential impact on resource distribution and the subsequent effects on power tariffs. Additionally, the authority noted that Pakistan had not consulted with them before announcing the cryptocurrency mining initiative.

As per the report, Senators expressed concerns over the recent Rs 1.275 trillion circular debt settlement with banks, with one lawmaker alleging coercion. However, Dr. Fakhray Alam Irfan denied the claims, stating that no new levies were imposed. He highlighted the success of the Apna Meter Apni Reading app, which has been downloaded by over 500,000 consumers to curb overbilling. The service is set to be extended to K-Electric soon.

Coingape team has reached to officials in Pakistan, but is yet to hear anything. We will update as soon as we hear from something.