The International Monetary Fund (IMF) has rejected Pakistan's proposals to offer subsidized electricity for Bitcoin mining and other energy-intensive sectors. The Pakistani government intended to use 2,000 megawatts from its surplus of 7,000 MW to support crypto mining at a rate of 23-24 rupees ($0.08) per kilowatt-hour. The IMF raised concerns about market distortions, questioning how the government would revert the subsidized rates to market prices and warned that such concessions, resembling tax holidays, often fail to yield results. Initially proposed in September 2024, the plan faced scrutiny and was curtailed from six months to three under IMF pressure. Dr. Fakhray Alam Irfan, Secretary of Power, noted ongoing discussions with international institutions to refine the plan, which the Pakistani government hopes will empower the estimated 100 million unbanked citizens of the country through blockchain technology. The proposals were inspired by initiatives from former U.S. President Donald Trump's administration.

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