IMF Rejects Pakistan’s Bitcoin Mining Energy Plan

PANews reported on July 3 that according to Cryptonews, the International Monetary Fund (IMF) has rejected Pakistan's plan to provide preferential electricity prices for cryptocurrency mining. The Secretary of Pakistan's Ministry of Power told the Senate Electricity Committee that the IMF believes that the plan may increase the burden on the power system and cause market distortions. The Pakistani government is currently renegotiating the electricity subsidy plan with international organizations. The Senate Electricity Committee also discussed technical solutions to combat power theft and asked the power sector to submit detailed responses to related issues before the next meeting.

In May this year, the Pakistani government announced plans to allocate 2,000 megawatts of electricity for cryptocurrency mining and artificial intelligence data centers in an effort to attract foreign investment. The plan was promoted by the Pakistan Cryptography Committee and supported by the Ministry of Finance. However, the IMF pointed out that Pakistan did not consult with it before announcing the plan, and questioned the legality of cryptocurrency mining in the country and the additional pressure it could put on the already overwhelmed power grid.