IMF Raises Concerns Over Pakistan's Plan to Allocate Electricity for Bitcoin Mining and AI Centers

IMF Expresses Concerns Over Electricity Allocation for Bitcoin Mining in Pakistan

In a recent development, the International Monetary Fund (IMF) has raised doubts over Pakistan’s decision to set aside 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers. This decision comes amidst ongoing conversations related to Pakistan’s protracted financial program.

Pakistan’s Initiative to Attract Miners and Firms

The initiative, introduced recently, aims to encourage autonomous miners, blockchain companies, and AI firms to establish operations in Pakistan. However, the IMF has requested urgent clarification from Pakistan’s Finance Ministry about the legal status of crypto mining and power allocations. This is particularly significant given the country’s ongoing energy shortages and fiscal pressures. The IMF was reportedly not involved in the decision-making process and has thus questioned the legal standing of cryptocurrencies in Pakistan. The organisation also expressed concerns about potential impacts on power tariffs and the allocation of resources throughout the country.

Negatives Surrounding Pakistan’s Initiative

An official involved in the ongoing negotiations disclosed fears of a stricter dialogue from the IMF relating to this initiative. The economic team is reportedly already handling tough questions, suggesting that this move has only added to the intricacies of the conversations.

The Role of IMF Delegation in the Issue

The IMF delegation, now conducting virtual discussions with Pakistani representatives, is likely to schedule a separate session dedicated to the government’s power plan for Bitcoin mining and AI operations. The electricity allocation forms part of a broader national strategy to incorporate digital assets into Pakistan’s economy. A central aspect of this plan is the establishment of the Pakistan Digital Asset Authority (PDAA), approved by the Finance Ministry.

Roles and Functions of PDAA

The newly-approved PDAA will be responsible for regulating exchanges, wallets, stablecoins, and DeFi platforms, as well as overseeing the tokenization of national assets in compliance with international structures such as those set by the Financial Action Task Force (FATF). This development follows Pakistan’s unveiling of its first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference. The event not only signaled Pakistan’s pivot towards digital finance but was also the platform for Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, to announce the launch of a national Bitcoin wallet and the government’s commitment to support the digital asset sector.

Pakistan’s New Approach to Crypto Sector

The Pakistani government’s stance on cryptocurrencies began changing earlier this year with the proposal of a National Crypto Council. The organization was given the significant task of drafting a comprehensive regulatory framework for digital assets and wooing foreign investment into the country’s ever-expanding crypto ecosystem. Among the Council’s initial proposals were plans to use surplus energy for Bitcoin mining and data center operations, as well as establish a national Bitcoin reserve. Binance co-founder Changpeng Zhao has also been appointed as an adviser to the Council, with the expectation that he will provide advice on crypto regulations, blockchain infrastructure, and digital asset adoption. This new approach towards cryptocurrencies and blockchain technologies by Pakistan signifies a major leap forward for the country. However, the concerns raised by the IMF underscore the complexities of integrating these advanced technologies into traditional economic structures and the ongoing challenges they pose to legal and regulatory frameworks worldwide.