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

Cryptos: 21,330
Exchanges: 1,863
Market Cap: $3.71T 0.75%
24h Vol: $235,805,065,317 130.23%
Dominance: BTC: 63.4% ETH: 9.7%
Gas: 1 GWEI

Connect

Crypto News Regulation

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

Written by Aaron S.,

Editor-In-Chief

Last Updated: July 03, 2025

Key Takeaways

IMF blocked Pakistan’s plan to sell cheap power to crypto miners by citing risks to the energy market;
The proposal aimed to use surplus electricity at $0.08/kWh, but no final approval has been given;
Pakistan’s energy sector already faces $4.5 billion in debt, which makes subsidies a concern for lenders.

Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥

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

BITDEGREE IN YOUR SOCIAL FEED

Pakistan’s attempt to support its crypto mining sector with lower electricity prices has been blocked by the International Monetary Fund (IMF), according to a July 3 report by Business Recorder.

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.

What is Fantom? | Animated FTM Explainer

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

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.