Key Takeaways
- IMF concerned: The International Monetary Fund (IMF) raised concerns over Pakistan allocating 2,000 megawatts (MW) of power to Bitcoin mining and Artificial Intelligence (AI) centres.
- Strain on power grid: Critics warn this allocation may worsen power shortages and raise tariffs, impacting low-income households.
- Lack of IMF briefing: The IMF has always emphasized that all aid-receiving countries, including Pakistan, must consult the Fund on significant policy changes, especially while under financial support programs. Despite this, the IMF was not informed beforehand about the energy allocation, and it is now seeking clarity on crypto legality and economic viability.
- Government push for crypto: Pakistan remains committed to digital finance, launching the Pakistan Digital Asset Authority and a national Bitcoin wallet.
The International Monetary Fund (IMF) has expressed concern over Pakistan’s decision to allocate 2,000 megawatts of electricity to Bitcoin mining and artificial intelligence (AI) data centers, citing potential legal, economic, and energy-related implications.
The initiative was announced by the government as part of a broader push to integrate digital finance into the national economy. It aims to attract crypto miners, blockchain firms, and AI companies through dedicated infrastructure and incentives. Backed by the Finance Ministry, the plan includes tax breaks and regulatory support.
Risks to Energy Distribution and Low-Income Households
However, the IMF has raised red flags over the proposal. According to officials close to the ongoing negotiations, the Fund is now seeking urgent clarification from the Finance Ministry on the legal status of crypto mining and the impact of power allocation on the country’s strained energy grid.
The implications of this could be quite significant as IMF has recently approved a $1.4 billion loan for the country under its Extended Fund Facility (EFF). The IMF has always stated its requirement that all policy changes be discussed with the organization by countries receiving support under the EFF.
Sources within Pakistan’s Finance Ministry revealed to news channels that the government did not inform the IMF about its intentions to allocate power for Bitcoin mining.
“There is a fear of further tough talks from the IMF on this initiative,” a government source told news reporters. “The economic team is already under pressure, and this move has added new complexities to the dialogue,” he added.
Critics state that the concerns of the IMF are valid as Pakistan continues to grapple with frequent power outages and fiscal challenges. Critics warn that diverting 2,000 megawatts—roughly enough to power millions of homes—could exacerbate energy shortages and increase tariffs for low-income households.
Government Sees Economic Opportunity in Crypto
Despite the concerns, the government appears committed to its digital finance roadmap. A central element of the strategy is the establishment of the Pakistan Digital Asset Authority (PDAA), approved by the Finance Ministry on May 21, 2025. The PDAA will oversee digital asset regulation, including exchanges, stablecoins, wallets, and decentralized finance (DeFi) platforms. It will also manage asset tokenization efforts in alignment with global standards, including those set by the FATF.
The digital finance push gained momentum last week when Pakistan unveiled its first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference. There, Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, announced the launch of a national Bitcoin wallet and reaffirmed Islamabad’s commitment to supporting the crypto industry.
As Pakistan seeks to modernize its economy through digital assets, the IMF’s scrutiny underscores the delicate balance between innovation and fiscal discipline. Continued talks will determine whether the country can align its ambitions with the structural reforms demanded by international lenders.
