The International Monetary Fund (IMF) has rejected Pakistan's proposal to offer subsidised electricity tariffs for crypto mining, emphasizing risks of market distortion in the already troubled power sector. Secretary Power Dr. Fakhray Alam Irfan confirmed that despite surplus electricity during winter, the IMF would not support targeted electricity packages for crypto mining. The IMF cautions that these subsidies could exacerbate market distortions within Pakistan's power infrastructure, which currently faces over Rs 1.275 trillion in circular debt. The Pakistani government aimed to boost industrial consumption of surplus power and had proposed a package for crypto mining at a competitive rate to enhance energy use; however, previous plans were also turned down by the IMF. Experts underscore the need for Pakistan to prioritize sustainability and consider alternatives like hydel power or solar energy for its mining ambitions while ensuring economic stability. With ongoing efforts to establish a crypto-friendly environment nationally, including the appointment of a special advisor for blockchain and cryptocurrency, the government's strategy remains closely monitored by international financial institutions.

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