Pakistan's initiative to utilize surplus electricity for Bitcoin mining is facing significant obstacles after the International Monetary Fund (IMF) rejected a proposal for subsidized power for energy-intensive industries, including crypto mining. The IMF expressed concerns that such subsidies could disrupt the energy market and exacerbate the country's existing power sector challenges. Despite having excess electricity, particularly in the winter, the proposal has been met with skepticism. The Power Division's November 2024 plan suggested a marginal-cost tariff for industries to boost electricity demand but was compared by the IMF to previous tax breaks that resulted in economic imbalances. The proposal is currently under review by the World Bank and other partners, with the government seeking to refine it. Meanwhile, there were tax incentives announced in May for Bitcoin miners and AI centers as part of Pakistan's digital transformation efforts.

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