IMF Raises Concerns Over Pakistan’s Bitcoin Mining Expansion Plan

Pakistan’s Ambitious Bitcoin Mining Initiative Faces IMF Scrutiny

The International Monetary Fund (IMF) has expressed significant concerns regarding Pakistan’s decision to allocate 2,000 megawatts of electricity for Bitcoin mining data centers and artificial intelligence operations. This development comes as Pakistan continues negotiations for an extended financial program with the international lending institution.

Government’s Digital Asset Strategy Under Question

Pakistan’s government announced the ambitious initiative last week, designed to attract cryptocurrency miners, blockchain companies, and AI firms to the country. However, the IMF has raised red flags about this move, demanding urgent clarification from the Finance Ministry regarding the legality of cryptocurrency mining operations and electricity allocation.

IMF Pakistan finance discussions – Source: Dawn

The concerns are particularly pressing given Pakistan’s chronic energy shortages and ongoing financial pressures. According to local media reports from Samaa, the IMF was not consulted before the announcement and is questioning the legal status of cryptocurrency in Pakistan.

Energy Allocation Concerns and Economic Impact

The IMF has voiced apprehensions about the potential impact on electricity prices and resource distribution. A government official involved in ongoing negotiations reportedly stated: “There are concerns about further complicating IMF negotiations with this initiative. The economic team is already facing tough questions, and this move only adds complexity to the discussions.”

Pakistan electricity shortage challenges – Source: Reuters

The energy allocation represents a significant portion of Pakistan’s power generation capacity, raising questions about prioritization amid existing energy deficits affecting millions of Pakistani citizens.

IMF Plans Special Session on Bitcoin Mining Strategy

The IMF delegation, currently conducting virtual discussions with Pakistani officials, is expected to schedule a dedicated session specifically addressing the government’s electricity allocation plan for Bitcoin mining and AI operations.

This special focus demonstrates the international lender’s serious concerns about Pakistan’s cryptocurrency strategy and its potential impact on the country’s economic stability and energy security.

Pakistan Digital Asset Authority Establishment

The electricity allocation forms part of Pakistan’s broader national strategy to integrate digital assets into the country’s economy. A crucial component of this plan involves establishing the Pakistan Digital Asset Authority (PDAA), which received Finance Ministry approval on May 21st.

The PDAA will oversee:

• Cryptocurrency exchanges regulation
• Digital wallet management
• Stablecoin oversight
• DeFi platform supervision
• National asset tokenization compliance with international frameworks like FATF guidelines

Strategic Bitcoin Reserve Launch

This development follows Pakistan’s high-profile launch of the country’s first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference last week. The announcement signals Islamabad’s significant shift toward digital finance adoption.

During the conference, Bilal bin Saqib, cryptocurrency advisor to Prime Minister Shehbaz Sharif, unveiled the national Bitcoin wallet launch and confirmed the government’s commitment to supporting the digital asset sector.

Pakistan’s Evolving Cryptocurrency Stance

The Pakistani government began shifting its cryptocurrency position earlier this year with the proposed establishment of a “National Cryptocurrency Council” in February 2025. This body has been tasked with:

• Drafting comprehensive regulatory frameworks for digital assets
• Attracting foreign investment to the country’s developing cryptocurrency ecosystem
• Utilizing surplus energy for Bitcoin mining and data center operations
• Building national Bitcoin reserves

Strategic Advisory Appointments

Binance co-founder Changpeng Zhao was appointed as an advisor to the Council in April, providing guidance on cryptocurrency regulations, blockchain infrastructure, and digital asset adoption strategies.

Challenges and Opportunities Ahead

Pakistan’s cryptocurrency initiative presents both significant opportunities and challenges:

Opportunities:

• Potential for attracting international cryptocurrency investments
• Utilization of surplus energy resources
• Economic diversification through digital assets
• Technological advancement in blockchain sector

Challenges:

• IMF concerns affecting international financial relations
• Energy allocation prioritization amid existing shortages
• Regulatory uncertainty and compliance requirements
• Balancing economic growth with fiscal responsibility

Conclusion

Pakistan’s ambitious Bitcoin mining and digital asset strategy represents a bold move toward cryptocurrency adoption. However, IMF concerns highlight the delicate balance between innovation and economic stability. The upcoming special IMF session will likely determine whether Pakistan can proceed with its cryptocurrency plans while maintaining international financial support.

The success of Pakistan’s digital asset initiative will depend on addressing energy concerns, ensuring regulatory compliance, and maintaining positive relationships with international financial institutions while fostering cryptocurrency sector growth.