Pakistan is facing challenges in implementing its plan to utilize surplus electricity for cryptocurrency mining after the International Monetary Fund (IMF) rejected the proposal for free electricity for energy-intensive industries.
IMF's Rejection of Subsidies for Miners
Pakistan's Secretary of Power Fakhre Alam Irfan stated that the IMF claimed that such measures could distort the energy market and worsen existing issues in the country's fragile power sector.
Discussion of the Plan with International Partners
Irfan noted that the proposal has not been completely shelved and is under review by the World Bank and other international partners. He also mentioned that the government is working on refining the plan with input from these organizations.
Pakistan's Plans for a National BTC Reserve
Earlier this year, Pakistan earmarked 2000 megawatts of surplus electricity for Bitcoin mining and AI centers as part of a digital transformation initiative. Finance Minister Muhammad Aurangzeb announced tax incentives for AI centers and duty exemptions for Bitcoin miners to attract investors.
Thus, while Pakistan's plan to utilize surplus electricity for cryptocurrency mining is in question, the government continues to work on developing a strategy in collaboration with international financial institutions.
