IMF Raises Concerns Over Pakistan’s Bitcoin Mining Power Plan

The IMF questions Pakistan’s plan to allocate 2,000 megawatts for Bitcoin mining amid energy shortages and budget talks, requesting legal clarification.

IMF demands answers from Pakistan

The International Monetary Fund (IMF) has expressed concerns over Pakistan’s decision to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers. The announcement comes as Pakistan negotiates an extension of its financial program.

The plan, unveiled last week, aims to attract miners, blockchain companies, and AI firms to Pakistan.

IMF was not consulted beforehand

According to local outlet Samaa, the IMF was not informed prior to the announcement and is demanding urgent clarification on the legality of crypto mining and power allocations. Pakistan currently faces persistent energy shortages and fiscal challenges.

Officials involved in the talks warn that this decision may further complicate already difficult negotiations. The IMF is particularly concerned about potential impacts on power tariffs and energy distribution.

IMF plans special session on mining allocation

The IMF delegation is conducting virtual discussions with Pakistani officials and plans a separate session focused on Bitcoin mining and AI energy usage.

This initiative is part of Pakistan’s broader strategy to integrate digital assets into its economy. In May 2025, the Finance Ministry approved the creation of the Pakistan Digital Asset Authority (PDAA).

Pakistan advances crypto adoption

The PDAA will regulate exchanges, wallets, stablecoins, DeFi platforms, and asset tokenization following international standards such as those of the FATF.

This move follows Pakistan’s recent unveiling of its first strategic Bitcoin reserve at Bitcoin Vegas 2025. During the conference, crypto adviser Bilal bin Saqib announced the launch of a national Bitcoin wallet and government backing for digital assets.

In February 2025, Pakistan proposed forming a National Crypto Council to create regulations and attract foreign investment. The Council also suggested using surplus energy for Bitcoin mining.

In April, Binance co-founder Changpeng Zhao was appointed adviser to the Council, guiding regulations and blockchain infrastructure development.