The International Monetary Fund (IMF) has raised concerns about Pakistan’s plan to allocate 2,000MW of electricity for Bitcoin mining and AI data centers, as the country continues negotiations over its extended financial program. The initiative, announced last week, aims to attract companies in autonomous mining, blockchain, and AI to Pakistan.
However, the IMF has raised red flags about the decision, urgently seeking clarification from the Finance Ministry on the legality of crypto mining and the distribution of electricity. This follows as the country faces ongoing energy shortages and economic strain, according to local news outlet Samaa.
According to the report, the IMF wasn’t consulted before the announcement and is questioning the legal status of cryptocurrencies in Pakistan. The Fund has also raised concerns about possible impacts on power tariffs and resource distribution.
There is a fear of further tough talks from the IMF on this initiative. The economic team is already facing stiff questions, and this move has only added to the complexities of the talks.
IMF schedules session on Bitcoin mining proposal
The IMF delegation, currently in virtual talks with Pakistani officials, will schedule a separate meeting to discuss the government’s electricity plan for Bitcoin mining and AI operations.
The electricity allocation is part of a broader national plan to bring digital assets into Pakistan’s economy. A major part of this plan is establishing the Pakistan Digital Asset Authority (PDAA), approved by the Finance Ministry on May. 21.
The PDAA will oversee exchanges, wallets, stablecoins, and DeFi platforms. It will also manage the tokenization of national assets according to international standards like those from the Financial Action Task Force (FATF).
Pakistan launches national Bitcoin wallet
Pakistan recently made its high-profile debut of its first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference last week, an event showing Islamabad’s shift toward digital finance.
During the conference, Bilal bin Saqib, the crypto adviser to Prime Minister Shehbaz Sharif, announced the launch of a national Bitcoin wallet and the government’s pledge to support the digital asset sector.
Pakistan’s government started to change its approach to cryptocurrencies earlier this year by proposing a “National Crypto Council” in Feb. 2025.
