The International Monetary Fund (IMF) has declined Pakistan’s proposal to offer subsidized electricity to crypto mining operations, data centers, and large-scale industries, dealing a blow to the government’s plan to utilize surplus power during the winter months.

During a recent briefing to the Senate Standing Committee on Power, Power Secretary Dr. Fakhray Alam Irfan shared that the subsidy scheme had been put forward to manage excess generation capacity. However, the IMF strongly opposed what it termed “targeted subsidies” for sectors like crypto and digital infrastructure, citing fiscal sustainability concerns.

Although the IMF has officially turned down the plan, Pakistan has not shelved it entirely. Officials are now engaging with the World Bank and other lenders to seek alternative feedback and possible support.

Circular Debt Deal Draws Scrutiny

In the same session, lawmakers questioned the recent Rs. 1.275 trillion circular debt settlement involving commercial banks. Some senators alleged that financial institutions were coerced into accepting the terms. Dr. Irfan rejected the claim, asserting that the agreement was voluntary and did not impose any new financial burdens on the public through fresh levies.

Digital Metering Gains Momentum

Amid concerns of inflated electricity bills, the “Apna Meter Apni Reading” mobile application has seen over 500,000 downloads. The app allows consumers to self-report meter readings in an effort to eliminate overbilling. The initiative will soon be expanded to include K-Electric (KE) users as well.

Load Shedding and Corruption Allegations

Senators also raised serious concerns about load shedding in areas where electricity bills are fully paid. One lawmaker claimed that local power officials were demanding bribes for reconnection services. Dr. Irfan clarified that load shedding is enforced only in zones with more than 20% power losses, as part of revenue-based policy measures.

Current Subsidy Landscape

Dr. Irfan disclosed that nearly 58% of Pakistan’s electricity consumers are currently receiving subsidized rates, with many paying as little as Rs. 10 per unit. He confirmed that Rs. 250 billion has been earmarked for subsidies in the current fiscal year, subject to approval from donor agencies.

Efforts to reduce line losses and theft through technology upgrades are also underway, as the government tries to strike a balance between supporting industrial growth and maintaining fiscal discipline.