IMF Concerns Over Pakistan’s Electricity Commitment
The International Monetary Fund (IMF) has expressed apprehension regarding Pakistan’s recent commitment to provide 2,000 megawatts of electricity exclusively for Bitcoin mining and artificial intelligence data centers. This decision comes at a crucial time as the country is still negotiating the terms of its ongoing financial assistance program with the IMF. The Pakistan government unveiled this initiative last week in hopes of attracting independent miners and AI technology firms to its shores.
Financial Implications and Energy Crisis
Local media outlet Samaa reported that the IMF is seeking immediate clarification from Pakistan’s Finance Ministry regarding both the legal status of cryptocurrency mining within the country and the implications of such substantial power allocations, especially considering Pakistan’s ongoing energy crises and economic challenges.
According to sources involved in the negotiations, the IMF has voiced skepticism over potential effects on electricity tariffs and the distribution of energy resources, stating,
“There is a fear of further tough talks from the IMF on this initiative.”
The economic team of Pakistan is under pressure as this new development complicates their ongoing discussions with the Fund.
IMF Delegation’s Virtual Discussions
As a part of their engagements, the IMF delegation, which is currently carrying out virtual discussions, is expected to organize a distinct session to specifically address the government’s plans around electricity generation for Bitcoin and AI operations. This allocation of electricity is linked to a broader national strategy aimed at incorporating digital currencies into Pakistan’s financial system.
Central to this strategy is the formation of the Pakistan Digital Asset Authority (PDAA), which received approval from the Finance Ministry on May 21. The PDAA is tasked with the regulation of cryptocurrency exchanges, digital wallets, and decentralized finance (DeFi) platforms, in addition to facilitating the tokenization of national assets in accordance with international guidelines, including those outlined by the Financial Action Task Force (FATF).
Steps Towards Embracing Digital Finance
This initiative follows Pakistan’s recent participation at the Bitcoin Vegas 2025 conference, where it marked a significant step towards digital finance by announcing the establishment of its first strategic Bitcoin reserve. Bilal bin Saqib, a crypto advisor to Prime Minister Shehbaz Sharif, revealed plans for a national Bitcoin wallet during the event, reflecting the government’s newfound support for the cryptocurrency sector.
Earlier this year, Pakistan’s government began reevaluating its policy on cryptocurrencies by proposing the formation of a “National Crypto Council” back in February 2025. This council’s mandate includes developing a comprehensive regulatory framework for digital assets and encouraging foreign investments into the nation’s emerging crypto market. Among its initial proposals was the intention to leverage surplus energy for Bitcoin mining operations along with establishing a national Bitcoin reserve. Notably, Binance co-founder Changpeng Zhao was appointed as an advisor to this council in April, with the expectation that he will assist in shaping crypto regulations and enhancing blockchain infrastructure in Pakistan.
