IMF Raises Alarm Over Pakistan’s Bitcoin Energy Plan

The International Monetary Fund (IMF) has raised serious concerns about Pakistan’s recent decision to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence (AI) data centers — a move that comes even as the country faces persistent energy shortages and tense budget negotiations.

Power Plan Sparks IMF Scrutiny

Announced last week, the initiative is part of Pakistan’s efforts to attract global blockchain companies, AI firms, and autonomous miners to the country. But the IMF has reportedly flagged the plan, urgently requesting clarification from Pakistan’s Finance Ministry on both the legality of cryptocurrency mining and the significant energy allocations involved.

Officials say the IMF was not consulted before the announcement and now fears that the move could affect electricity tariffs and disrupt national resource management.

“There’s fear of even tougher IMF talks because of this,” an official close to the negotiations reportedly said. “The economic team is already under stiff pressure, and this has only added complexity.”

Special IMF Session Expected

The IMF delegation, currently conducting virtual discussions with Pakistani authorities, is expected to schedule a dedicated session focused on the government’s Bitcoin mining and AI electricity plan.

This energy initiative is a key part of Pakistan’s broader digital strategy, which includes the recently established Pakistan Digital Asset Authority (PDAA), approved by the Finance Ministry on May 21.

The PDAA has been tasked with regulating crypto exchanges, wallets, stablecoins, decentralized finance (DeFi) platforms, and the tokenization of national assets, aligning with global standards such as those set by the Financial Action Task Force (FATF).

Pakistan’s Bold Crypto Shift

The IMF’s concerns follow Pakistan’s recent splashy debut on the global crypto stage. At the Bitcoin Vegas 2025 conference last week, Pakistan unveiled its first strategic Bitcoin reserve — signaling Islamabad’s growing embrace of digital finance.

During the event, Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, announced the upcoming launch of a national Bitcoin wallet and reaffirmed the government’s commitment to supporting the digital asset sector.

Pakistan’s pivot toward crypto has been accelerating since early 2025, when the government proposed creating a National Crypto Council tasked with drafting a full regulatory framework and attracting foreign investment to the country’s emerging crypto ecosystem.

Among the council’s early proposals: using surplus national energy for Bitcoin mining and data center operations, and building out the national Bitcoin reserve. Notably, Binance co-founder Changpeng Zhao was appointed as an adviser to the council in April to help guide crypto regulation, blockchain development, and digital asset adoption.