IMF Seeks Urgent Clarification on Pakistan’s Bitcoin Mining Project Amid Energy Crisis
The International Monetary Fund (IMF) has requested urgent clarification from the Pakistani government regarding its recent decision to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers, amid a national power crisis and ongoing financial instability, according to a local news report.
An IMF delegation is expected to hold a separate virtual session with Pakistan’s Ministry of Finance to discuss the specifics of the energy allocation. The announcement has raised alarms among international financial institutions, particularly given Pakistan’s fragile economic state and frequent electricity shortages.
The move comes just a week after Pakistan unveiled plans to repurpose three underutilized coal-powered plants to supply electricity for Bitcoin mining farms and artificial intelligence operations. The initiative is part of a broader national push to embrace digital assets and blockchain technology. However, sources within the Ministry of Finance confirmed that the IMF had not been consulted prior to the announcement.
Earlier this month, the IMF approved a $2.4 billion loan to Pakistan under its Extended Fund Facility (EFF), and it is currently in ongoing negotiations with Islamabad regarding the country’s future financial roadmap. The Fund has long cautioned against sovereign Bitcoin adoption, citing macroeconomic and financial stability risks.
According to sources cited in the report, the IMF has reiterated its expectation that countries benefiting from its extended financial programs should consult with the Fund before implementing any major policy shifts—particularly in sectors as sensitive as energy and cryptocurrency.
“There are concerns this initiative could complicate budget talks with the IMF,” a government official involved in the negotiations told Samaa News. “The economic team is already under pressure, and this move has only deepened the scrutiny.”
Energy, Economy, and the Crypto Push
While the government claims the initiative will put idle coal energy to productive use and attract digital infrastructure investment, the IMF remains concerned about potential implications on power tariffs and distribution in a country already struggling with recurrent blackouts and public unrest over electricity pricing.
In April, Pakistan’s national energy regulator had introduced targeted electricity price cuts following a year of repeated tariff hikes. Observers fear that diverting power to crypto mining could further strain supply and complicate efforts to stabilize household energy costs.
Despite these concerns, Pakistan has accelerated its embrace of digital assets in recent months. In March, it established the Pakistan Crypto Council (PCC) to oversee regulation and drive adoption. Just weeks later, it appointed former Binance CEO Changpeng Zhao (CZ) as a strategic advisor to the council—a move that made international headlines.
In another bold step, the PCC signed a memorandum of understanding with World Liberty Financial, a decentralized finance (DeFi) initiative closely linked to former U.S. President Donald Trump and his sons.
The culmination of these efforts came on May 21, with the launch of the Pakistan Digital Asset Authority (PDAA), tasked with licensing crypto service providers, enforcing compliance with Financial Action Task Force (FATF) standards, and promoting innovation in the sector. The launch event featured U.S. Vice President JD Vance and Donald Trump Jr. and Eric Trump.
Bitcoin Reserve and National Wallet Unveiled
Speaking at the Bitcoin 2025 conference on Thursday, Bilal Bin Taqi, Prime Minister Shehbaz Sharif’s advisor on digital assets, announced the launch of Pakistan’s first national Bitcoin reserve and a government-backed Bitcoin wallet.
“Our youth are online and plugged into global supply chains,” he said. “With more than 40 million digital wallets and a median age of 23, Pakistan is a country defined not by its past, but by its future.”
While the government portrays its digital pivot as visionary and future-focused, the IMF’s reaction underscores the delicate balancing act Islamabad must maintain between innovation and fiscal responsibility.
