Quick overview
Pakistan’s decision to allocate 2,000 MW of electricity to Bitcoin mining and AI data centers has raised immediate concerns from the International Monetary Fund (IMF). The move aimed at luring blockchain and AI companies to the country comes at a critical time – during ongoing talks with the IMF over an extended financial support program.
According to Samaa, the IMF was not informed in advance of the announcement. Now the Fund has asked the Finance Ministry for clarification on the legality of crypto mining in Pakistan and the impact it could have on a power grid already reeling under chronic shortages.
An official involved in the talks said, “This adds complexity to already tense negotiations. The IMF is not just concerned with legality but with the increase in power tariffs and how it will affect low-income households.”
Bitcoin Push Amidst Energy Crisis
Despite national blackouts and fiscal deficits, Pakistan’s government is keen to integrate digital finance into its economic framework. The newly approved Pakistan Digital Asset Authority (PDAA) which was greenlit on May 21 will oversee all crypto related activities – from regulating exchanges to tokenizing national assets.
The 2,000 MW allocation is part of this broader strategy. But the contradiction between supporting energy intensive mining operations and managing energy scarcity raises questions. The IMF will hold a separate session with Pakistani officials on this issue and will emphasize the risks of diverting substantial electricity.
IMF is reviewing:
Legal status of Bitcoin mining in Pakistan
Impact on national energy tariffs
FATF compliance requirements
Economic returns vs power costs
Strategic Bitcoin Reserve Unveiled
Pakistan showcased its first national Bitcoin reserve at the Bitcoin Vegas 2025 conference last week. Crypto adviser Bilal bin Saqib also launched a national Bitcoin wallet, signaling Pakistan’s deepening involvement in digital finance. The country wants to position itself as a regional leader in blockchain and crypto innovation.
In February 2025, the government proposed to form a National Crypto Council to draft regulations and attract foreign crypto investment. Binance co-founder Changpeng Zhao has been roped in to advise the Council.
While the plans are big, the IMF’s skepticism highlights the balancing act between modernization and macroeconomic stability. As talks continue, Pakistan’s digital push may face more resistance unless it can align innovation with structural reforms.
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.
His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.
His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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