IMF Rejects Pakistan’s Subsidy Plan for Crypto and Data Centers

The International Monetary Fund (IMF) has rejected Pakistan’s plan to offer subsidized electricity rates to crypto mining operations, data centers, and heavy industries.

The proposal, initially pitched to manage surplus power during winter, has now been referred to the World Bank and other global lenders for further review.

During a briefing to the Senate Standing Committee on Power, Secretary Power Dr. Fakhray Alam Irfan revealed that while Pakistan has excess electricity in winter, the IMF strongly opposes “targeted subsidies”, particularly in sectors such as crypto and data management. Despite the IMF’s stance, the government has not yet withdrawn the plan and is seeking feedback from other lending institutions.

Circular Debt Agreement Under Fire

Lawmakers also raised concerns over the recent Rs. 1.275 trillion circular debt settlement with banks. One senator alleged that banks were “forced into the agreement,” a claim that Dr. Irfan firmly denied. He clarified that no new levies had been imposed as part of the deal.

On the digital front, over 500,000 users have downloaded the “Apna Meter Apni Reading” app, which allows consumers to self-report their meter readings and avoid overbilling. The initiative will soon extend to K-Electric (KE) consumers as well.

Load Shedding and Allegations of Corruption

Several senators criticized the government over continued load shedding, even in areas where consumers have paid their bills in full. One senator alleged that local officials demand bribes to restore disconnected power lines. In response, the Power Secretary stated that revenue-based load shedding is enforced in areas with more than 20% power losses.

Dr. Irfan also noted that 58% of consumers currently benefit from a subsidized electricity rate of Rs. 10 per unit. He added that the government, with donor approval, has allocated Rs. 250 billion in subsidies for the year and plans to expand anti-theft technologies to curb line losses and improve efficiency.

As Pakistan navigates a challenging energy landscape, international lenders’ resistance to sector-specific relief highlights the balancing act between fiscal responsibility and economic development.