Pakistan has sparked global attention with its new plan to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers. The move comes during a sensitive time, as the country is still in talks with the International Monetary Fund for a financial package.
The IMF has quite a strong objection to this move. It has sought detailed information and explanation from the Finance Ministry. This was soon after Pakistan declared its inaugural strategic Bitcoin reserve. The country made this announcement at the Bitcoin Vegas 2025 conference.
Officials touted this initiative as a gateway to the global digital economy. A national Bitcoin wallet was introduced, and Pakistan was promoted as a fresh destination for cryptocurrency and technology investments. The crypto adviser to the Prime Minister of Pakistan emphasized the country’s youth and technological adeptness.
IMF raises concerns over Crypto plans
He said the strategy was designed to create more opportunities for miners and blockchain firms. It also encouraged investors to check out Pakistan’s digital potential. However, the IMF is still not satisfied. It wants an explanation as to why such a huge chunk of power is allocated for digital activities when the nation itself is struggling with energy shortages.
Sources say the IMF was not informed in advance. It has also asked about the legal status of cryptocurrencies in Pakistan. The government has yet to issue a clear policy on the matter. The Fund has reminded Pakistan that all major decisions under the financial program require its input.
Most of the officials have expressed uncertainty about the possibility of easier negotiations after this round. The IMF delegation is likely to take up this issue in another session shortly. Meanwhile, Pakistan has set up the Pakistan Digital Asset Authority, a new entity that will oversee the digital space.
Innovation meets caution in Pakistan
It will oversee cryptocurrency exchanges, stablecoins, and the tokenization of government assets. The administration claims it will harmonize these policies with global standards. The technology announcement has generated investor excitement, but many questions remain.
No official statement from the Finance Ministry has been issued so far. According to sources, officials are wary due to the IMF’s reaction and the legal ambiguities involving cryptocurrency. This brave, big digital move has generated a lot of buzz, both domestically and internationally.
But the real challenge is yet to come. Pakistan will have to find a way to keep enhancing its innovative capacity while controlling public finance. The trajectory that Pakistan adopts shortly will be watched closely by investors as well as global lenders.
