The IMF has expressed concern over Pakistan supplying electricity to Bitcoin mining operations and AI data centers, especially as the country faces ongoing power shortages.
According to a local news report, the International Monetary Fund (IMF) has requested that Pakistan promptly clarify its intentions regarding power allocation for Bitcoin mining, as the nation grapples with electricity shortages and financial challenges. A separate virtual meeting with Pakistan’s Finance Ministry is expected to be held by the IMF delegation to address the power distribution issue specifically.
Pakistan revealed last week that 2,000 megawatts of electricity would be designated for running Bitcoin mining facilities and artificial intelligence (AI) data centers.
Earlier this month, the IMF approved a $2.4 billion loan for Pakistan and is now engaged in discussions with the country regarding its budget strategy. The organization has consistently cautioned nations about the potential risks associated with government involvement in Bitcoin purchases.
Finance Ministry sources revealed that Pakistan did not involve the IMF in its decision to allocate power for Bitcoin mining. However, the local news report, citing individuals familiar with the matter, noted that the IMF has restated its requirement for countries receiving support under the Extended Fund Facility (EFF) to consult the organization on all policy adjustments.
A representative participating in the budget discussions with the IMF informed the local news outlet Samaa:
There is a fear of further tough talks from the IMF on this initiative [of allocating electricity to Bitcoin mining]. The economic team is already facing stiff questions, and this move has only added to the complexities of the ongoing talks.
Pakistan intends to convert three underused coal power plants to supply energy for Bitcoin mining operations and AI data centers. However, concerns have been raised by the IMF regarding the potential effects of this plan on electricity rates and distribution systems.
In April, reductions in electricity prices for various consumer categories were announced by Pakistan’s National Electric Power Regulatory Authority. However, these cuts came after a hike in base power tariffs that had been introduced the previous year.
Pakistan Accelerates Efforts to Embrace Cryptocurrency
In recent months, Pakistan has swiftly shifted its position on cryptocurrencies, unveiling multiple initiatives and strategies aimed at adopting and regulating digital assets.
In March, the Pakistan Crypto Council (PCC) was formed to oversee the regulation of crypto assets, encourage their adoption, and incorporate them into the nation’s financial system. Early in April, former Binance CEO Changpeng Zhao (CZ) was named as the council’s strategic advisor.
Toward the end of last month, a Memorandum of Understanding (MoU) was signed between the Pakistan Crypto Council (PCC) and World Liberty Financial, a decentralized finance initiative closely associated with former President Donald Trump and his sons.
On May 21, acting on the PCC’s recommendation, the government created the Pakistan Digital Assets Authority (PDAA). The event was attended by U.S. Vice President JD Vance, along with Eric Trump and Donald Trump Jr.
The PDAA is set to function as the main regulatory authority tasked with supervising the licensing of digital asset service providers, fostering innovation, and ensuring adherence to the Financial Action Task Force’s (FATF) guidelines.
During the Bitcoin 2025 conference on Thursday, Bilal bin Saqib, serving as the crypto adviser to Prime Minister Shehbaz Sharif, introduced Pakistan’s first strategic Bitcoin reserve—an announcement that has drawn attention from the IMF. He also revealed the rollout of a national Bitcoin wallet and stated:
Our youth are online and on-chain. Pakistan, with over 40 million crypto wallets and an average age of 23 years, is now being recognised for its future rather than its past.
