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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 utilize excess power to offer cheaper electricity to the crypto mining sector, despite the country’s surplus energy capacity.
According to recent reports, the IMF expressed concerns that Pakistan’s plan could destabilize the market and lead to potential economic imbalances. The global financial institution emphasized that any pricing mechanism introduced for a specific industry would have to align with the overall power sector strategy.
The development follows the Power Division’s proposal in November 2024 to implement a marginal cost tariff of PKR 22-23, equivalent to around $0.80 per kilowatt-hour, for industries with significant energy consumption, including the copper and aluminum smelting sectors, data centers, and crypto miners. The division claimed that this move would increase power demand and reduce potential surplus capacity.
In a statement before the Senate Standing Committee on Energy, Secretary of Power Fakhar Alam Irfan explained that all major energy sector initiatives must be cleared with the IMF, as well as World Bank and Asian Development Bank (ADB) support.
Source: bitcoinist.com
