IMF Rejects Pakistan’s Cheap Power Plan for Crypto Miners
Pakistan’s Power Division proposed selling surplus electricity at $0.08–0.081 per kWh to crypto miners, AI data centers and other energy-intensive sectors for six months. The plan aimed to cut fixed costs of idle generation and reduce Pakistan’s $4.5 bn circular debt. The IMF, citing risks of tariff distortion, rejected the cheap power for crypto miners plan. Without the cheap power for crypto miners, local firms lose a crucial cost edge. Islamabad is now consulting with the Finance Ministry, the World Bank and other development partners to revise the proposal.
Bearish
The IMF’s rejection of cheap power for crypto miners removes a key cost advantage for Pakistani miners, reducing profitability and potentially forcing asset sales. In the short term, higher energy costs could drive increased Bitcoin selling pressure, leading to bearish market sentiment. Over the long term, slower mining capacity growth in Pakistan may have limited impact on Bitcoin’s global supply-demand dynamics. Overall, the news weighs on miner margins and could exert downward pressure on Bitcoin’s price.