IMF criticizes Pakistani Bitcoin mining plan
IMF clashes with Pakistan over surprise Bitcoin mining energy plan
The International Monetary Fund has raised serious concerns over Pakistan’s surprise decision to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers, questioning both its legality and timing.
The IMF was not consulted before the announcement and has since asked the Finance Ministry for urgent clarification, reports Cointelegraph.
The Fund is especially wary given Pakistan’s ongoing energy shortages and fiscal challenges, fearing this move could worsen electricity tariffs and disrupt resource allocation. An official involved in current talks described the initiative as adding “complexities” to an already tense negotiation environment for Pakistan’s extended financial program.
Special IMF session to review mining and AI electricity use
A special session is being planned by the IMF delegation—currently in virtual talks with Pakistani officials—to evaluate the government’s electricity plan tied to Bitcoin mining and AI. The controversial allocation is part of a broader push to integrate digital assets into the national economy.
A key milestone came on May 21, when Pakistan’s Finance Ministry approved the formation of the Pakistan Digital Asset Authority (PDAA). This new regulator is expected to oversee crypto exchanges, wallets, stablecoins, DeFi platforms, and national asset tokenization, aligning with FATF standards. The IMF is likely to scrutinize this body’s mandate during the upcoming session.
Pakistan shifts gears with national crypto strategy
Islamabad’s embrace of digital assets has accelerated sharply in 2025. The launch of a national Bitcoin wallet and the debut of a state-run Bitcoin reserve—announced at the Bitcoin Vegas 2025 conference—signal a strategic pivot toward crypto finance. Crypto adviser Bilal bin Saqib, representing Prime Minister Shehbaz Sharif, emphasized the government’s commitment to innovation in digital finance.
Earlier this year, Pakistan proposed a National Crypto Council to draft legal frameworks and draw foreign capital. Initial proposals included leveraging excess electricity for mining—now the source of IMF scrutiny. Whether Pakistan can balance its crypto ambitions with the IMF’s fiscal demands remains to be seen.
Recently we wrote that Kazakhstan is planning to launch a “CryptoCity,” a regulatory pilot zone allowing cryptocurrency payments for goods and services, President Kassym-Jomart Tokayev announced on May 29.
