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IMF Rejects Pakistan’s Plan To Subsidize Power For Crypto Mining, Cites Market Destabilization Concerns
The International Monetary Fund (IMF) has reportedly rejected Pakistan’s proposal to subsidize electricity for crypto mining operations in the country. This decision comes after Islamabad requested permission from the international financial institution to provide cheaper power to certain sectors, including crypto mining and artificial intelligence.
According to a recent report by Independent Urdu, IMF officials expressed concerns that such an initiative could potentially destabilize the market and create economic imbalances. Pakistan’s proposal aimed to offer subsidized electricity at PKR 22-23 ($0.80) per kilowatt-hour for industries with significant energy consumption, including crypto miners.
The IMF’s rejection is likely a setback for Islamabad’s ambitions to become a major player in the global cryptocurrency mining industry. The move comes after Pakistan’s Power Division proposed a new tariff structure last November, which aimed to reduce power costs for various sectors, including the copper and aluminum smelting industries.
Pakistan has been actively working on establishing itself as a prominent crypto-hub by building its capacity to support large-scale mining operations. In May, the country’s government announced the creation of a national Bitcoin Reserve, as well as setting up a state-protected digital wallet to hold cryptocurrencies under government custody.
In response to the IMF’s decision, Pakistan will likely need to rethink its strategy for supporting crypto mining activities and potentially rework its proposal with the international financial institution.
Source: bitcoinist.com
