The International Monetary Fund (IMF) regularly stands in the way of cryptocurrency adoption. This reality has now hit Pakistan, which has national ambitions to mine Bitcoin. We explain everything.
Pakistan vs IMF: an energy dispute
It is difficult to ignore the International Monetary Fund’s (IMF) ability to intervene in government procedures involving cryptocurrencies. This is particularly true when it concerns countries that are likely to receive financial aid from the IMF. This small Central American country was forced to scale back its Bitcoin plans in order to qualify for a $1.4 billion loan. It’s a power struggle in which one of the main points of friction continues to be its BTC purchases.
In a similar vein, Pakistan recently decided to integrate Bitcoin into its national economic model. This is a multifaceted strategy that involves the creation of a strategic reserve boosted by DeFi returns, as well as a mining industry capable of capitalizing on its surplus energy production. This enthusiasm is clearly not appreciated by IMF members. Recent revelations by local media outlet Profit report disagreement over the strategy being applied to this adoption.
Bitcoin: surplus energy = tax exemption?
The revelation of this situation was made official during a session of Pakistan’s Standing Senate Committee. During the meeting, Senator Mohsin Aziz and Energy Secretary Fakhray Alam Irfan outlined the ongoing discussions with the IMF on the clearly sensitive issue of Bitcoin mining.
The main reason for the disagreement concerns a six-month tariff subsidy granted to “energy-intensive industries, such as cryptocurrency mining and metal industries” on their energy bills. A proposal submitted by the Energy Division in September 2024 was immediately scaled back by the IMF to cover only three months.
Following this rejection, the Pakistani Energy Division proposed in November 2024 a subsidy targeted solely at excess energy consumption. This was a sensible decision that would have made it possible to recover value from electricity production that is generally considered lost. However, the IMF rejected this option once again, considering it to be “a sectoral tax exemption that often causes imbalances in the economy.”
According to statements by Energy Secretary Fakhray Alam Irfan, this rejection does not represent a categorical refusal on the part of the IMF. Indeed, it appears that talks remain open with the international body to refine the plan. It is to be hoped that the final version will not completely exclude Bitcoin in order to finally become acceptable.
