IMF rejects Pakistan's plan to offer discounted electricity rates for cryptocurrency mining

ChainCatcher reports that, according to Cryptonews, the International Monetary Fund (IMF) has rejected Pakistan's plan to offer preferential electricity rates for cryptocurrency mining. The Secretary of Pakistan's Ministry of Power told the Senate Power Committee that the IMF believes the plan could increase the burden on the power system and cause market distortions. The Pakistani government is currently renegotiating its electricity subsidy program with international organizations. The Senate Power Committee also discussed technical solutions to combat electricity theft and requested the power department to submit a detailed response on related issues before the next meeting.

In May of this year, the Pakistani government announced plans to allocate 2,000 megawatts of electricity for cryptocurrency mining and artificial intelligence data centers, aiming to attract foreign investment. The plan was promoted by the Pakistan Crypto Committee and supported by the Ministry of Finance. However, the IMF pointed out that Pakistan did not consult with it before announcing the plan and questioned the legality of cryptocurrency mining in the country, as well as the potential additional strain on an already overburdened power grid.