The International Monetary Fund has declined to fully endorse Pakistan’s proposal for a subsidized electricity tariff aimed at powering Bitcoin mining operations, local media outlet Profit reported on July 3.
According to the report, Fakhray Alam Irfan, the Chairman of Pakistan’s Senate Standing Committee on Power, revealed that the IMF approved only a three-month relief period, down from the proposed six months, citing risks of market distortion and pressure on the country’s already strained energy sector.
The partial rejection reflects the IMF’s broader skepticism toward national-level crypto adoption. Similar warnings have been issued to other countries, including El Salvador, where the IMF has cautioned against direct government involvement in Bitcoin mining and accumulation.
Notably, the global financial regulator has also questioned Pakistan’s energy plans, especially those tied to emerging sectors like Bitcoin mining and AI infrastructure.
The government’s plan includes repurposing three underutilized coal plants to power crypto mining operations and data centers, an approach that has raised questions about national energy priorities and potential impacts on tariffs.
Pakistan deepens its Bitcoin strategy
Despite the IMF’s reservations, Pakistan appears to be doubling down on its crypto push.
The authorities have signaled a broader commitment to digital assets, framing Bitcoin as a sovereign-grade financial tool that could help strengthen financial decentralization and innovation in the Global South.
Pakistan is building a high-profile advisory group for its newly formed Crypto Council as part of this strategy. The team includes MicroStrategy’s Michael Saylor, Binance founder Changpeng “CZ” Zhao, and World Liberty Financial advisor Bin Saqib. These appointments reflect Pakistan’s ambition to shape global crypto discourse and policy.
In a related development, World Liberty Financial, the DeFi project with ties to US President Donald Trump and his family, signed a memorandum of understanding with the Pakistani Crypto Council (PCC) in late June.
Mentioned in this article
