No Cheap Power for Crypto Miners: IMF Blocks Pakistan’s Proposal

The idea, first introduced by Pakistan’s Power Division in September 2024, suggested offering cheaper electricity for six months to energy-intensive industries, such as crypto mining.

The goal was to make use of excess power and reduce the financial burden of unused electricity capacity. However, the IMF only agreed to a three-month version, and later changes that focused more directly on crypto miners were also rejected.

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Dr. Fakhray Alam Irfan, Secretary of the Power Division, spoke to lawmakers during a Senate committee meeting and said the IMF still has not approved any version of the proposal.

He noted that the plan is still being reviewed by the World Bank and other development partners, but so far, there has been no agreement.

The suggested pricing would have offered electricity at around $0.08 to $0.081 per kilowatt-hour (Rs 22–23/kWh). Officials said this rate matched the cost of producing the extra power, so it would not put more strain on the budget.

However, the IMF warned that such sector-specific discounts could harm the wider energy market. It pointed out that Pakistan’s electricity sector is already dealing with major financial issues, including circular debt that has grown to over $4.5 billion (Rs 1.275 trillion).

Meanwhile, Malaysia’s Access Blockchain Association recently raised concerns that the country risks missing out on the $5 billion cryptocurrency mining industry. How? Read the full story.