Key Takeaways:
The International Monetary Fund (IMF) has raised concerns regarding Pakistan’s initiative to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence (AI) data centers. The IMF highlighted potential legal risks and the impact on the country’s already strained energy resources.
The announcement of the ambitious plan came last week as part of Pakistan’s broader strategy to attract blockchain technology companies, AI innovators, and cryptocurrency miners. However, the IMF’s apprehensions center on the legality of cryptocurrency mining activities within the nation, as well as the stress this initiative could impose on its fragile power grid.
IMF Requests Clarification on Crypto Initiative
The IMF was reportedly not consulted prior to the rollout of this initiative and is now seeking immediate clarification from Pakistan’s Finance Ministry. Given the country’s ongoing energy shortages and rising inflation, the IMF has warned that the plan could exacerbate problems related to power tariffs and resource management.
“There is a growing concern that this initiative might lead to more challenging discussions with the IMF,” an official involved in the negotiations communicated to local media outlet Samaa. “The economic team is already under significant scrutiny, and this development adds to the complexities of the ongoing talks.”
While I’m an optimist by nature and I really hope I’m wrong, I think Pakistan will struggle to follow through on its Bitcoin and Bitcoin mining plans
Short answer why: IMF
Mid-sized answer why:
* Bitcoin is a huge threat to IMF in 5 ways.
* Pakistan are heavily indebted… pic.twitter.com/4t4BO6Keqm
— Daniel Batten (@DSBatten) May 31, 2025
The IMF delegation is currently engaging in virtual meetings with Pakistani officials and is anticipated to hold specialized discussions regarding the electricity allocation for the Bitcoin mining and AI data centers in the near future.
This power allocation aligns with a larger national strategy aimed at incorporating digital assets into Pakistan’s economy. A significant aspect of this strategy is the establishment of the Pakistan Digital Asset Authority (PDAA), which received approval from the Finance Ministry on May 21.
The PDAA will be responsible for regulating exchanges, wallets, stablecoins, decentralized finance (DeFi) platforms, and the tokenization of national assets, all while adhering to global standards such as those set by the Financial Action Task Force (FATF).
Pakistan Introduces Strategic Bitcoin Reserve
The initiative follows the recent announcement of Pakistan’s inaugural strategic Bitcoin reserve, presented at the Bitcoin Vegas 2025 conference. At this event, Bilal bin Saqib, the crypto advisor to Prime Minister Shehbaz Sharif, detailed the government’s plans for establishing a national Bitcoin wallet and reiterated its commitment to the digital asset sector.
Earlier this year, Pakistan began revising its cryptocurrency policy with the introduction of a “National Crypto Council,” charged with formulating a regulatory framework and encouraging foreign investments in the burgeoning crypto landscape.
Recently, Prime Minister Shehbaz Sharif appointed Bilal Bin Saqib as Special Assistant on Blockchain and Crypto, elevating him to the status of a minister of state. In this position, Saqib will have critical responsibilities that include drafting FATF-compliant regulations for crypto, initiating state-supported Bitcoin mining projects, and implementing blockchain technology in governance, land records, and financial systems.
He will also oversee the licensing of virtual asset service providers and work on enhancing investor protection measures within the Web3 domain.
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