IMF Rejects Pakistan’s Crypto Mining Electricity Plan

The International Monetary Fund (IMF) has disapproved of Pakistan’s proposal to offer subsidized electricity for cryptocurrency mining, citing potential grid pressure and market distortions.

The IMF’s decision highlights Pakistan’s challenges in balancing cryptocurrency promotion with grid stability. The rejection impacts potential foreign investment in crypto and AI sectors.

IMF Disapproves Pakistan’s 2,000 MW Crypto Mining Plan

PANews reported on July 3 that the International Monetary Fund (IMF) rejected Pakistan’s plan to provide preferential electricity prices for cryptocurrency mining. The proposal aimed to allocate 2,000 megawatts of electricity for mining and AI data centers, promoted by the Pakistan Cryptography Committee.

The IMF expressed concerns about grid burden and market distortions. Because Pakistan is engaging in renegotiations on subsidies, the initial announcement drew attention for not consulting with the IMF officially, and the plan’s legality is questioned.

Dr. Fakhray Alam Irfan, Secretary of Pakistan’s Ministry of Power, “As of now, the IMF has not agreed,” highlighting the lack of consensus on the proposal. Although there’s ongoing support from government entities, stakeholders adjust strategies. The market response from major figures remains unpublished, but Pakistan’s objectives play a significant role.

Bitcoin Valuation Soars Amid Global Energy Debates

Did you know? The power subsidy issue mirrors past debates in other countries where energy resource allocation controversies arose due to market distortion concerns.

According to CoinMarketCap, Bitcoin (BTC) is currently valued at $109,724.66, reflecting a 1.91% increase over the past 24 hours. With a market cap of $2.18 trillion, BTC continues to hold a market dominance of 64.32%. Trading volume has seen a 13.47% increase, with significant 29.92% growth over the last 90 days. The supply is nearing its maximum cap, impacting longer-term mining scenarios.

Coincu Research suggests that if Pakistan realigns its regulatory framework, it might better attract foreign investments, enhancing crypto stature globally. Continued grid management adjustments could lead to improved crypto infrastructure development within the country.