IMF rejects Pakistan’s plan to provide cheap electricity for Bitcoin mining, citing energy and market stability concerns
The Pakistani government planned to allocate 2,000 megawatts of electricity specifically to support Bitcoin mining and artificial intelligence data centers, aiming to boost economic growth. However, the International Monetary Fund (IMF) opposed the initiative, arguing it would strain the country's already vulnerable electricity infrastructure.
The IMF warned that subsidizing electricity for Bitcoin mining would lead to instability in energy supply, legal uncertainties, and potential market disruptions. Pakistan frequently experiences extensive power outages and struggles with infrastructure limitations, underscoring the IMF's concerns.
While IMF’s decision has temporarily halted Pakistan’s ambitions in expanding its Bitcoin mining industry, it remains unclear whether the government will pursue alternative approaches to support the sector.
