Pakistan continues to face challenges with the International Monetary Fund (IMF) regarding the subsidization of electricity for crypto mining. Recent efforts to gain support from the fund have not succeeded.
Context of Pakistan's Approach to the IMF
During a session of the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz, Secretary of Power Dr. Fakhray Alam Irfan outlined the government’s recent efforts to negotiate subsidized electricity tariffs with the IMF. The proposal aimed to offer reduced electricity rates to energy-intensive sectors, particularly crypto mining.
IMF's Reaction to the Proposal
However, the IMF rejected the idea, arguing that such subsidies could disrupt the energy market and add further strain to the power sector’s already fragile finances. This comes after Pakistan's earlier announcement to dedicate 2,000 megawatts of surplus electricity to the crypto sector.
Future of Negotiations and Government Plans
Despite setbacks in negotiations, Dr. Irfan assured the committee that discussions with the IMF and other international bodies remain ongoing. Previously, the government floated other measures that also failed to gain approval from the IMF, including temporary electricity tariffs.
The situation regarding electricity subsidies for crypto mining in Pakistan remains tense, as the government faces challenges in negotiations with the IMF.
