IMF raises concerns over Pakistan’s crypto mining power plan

The International Monetary Fund (IMF) has raised concerns over Pakistan’s recent move to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence (AI) data centers, amid ongoing negotiations tied to the country's extended financial support program.

The initiative, announced last week, is part of a broader national strategy to attract blockchain firms, autonomous miners, and AI companies to Pakistan. However, the IMF has reportedly expressed serious reservations over the legality and economic implications of the move, according to local media outlet Samaa.

Citing sources familiar with the matter, the IMF has asked Pakistan’s Finance Ministry to urgently clarify the legal status of cryptocurrency mining and the basis for such a large power allocation, especially at a time when the country is facing persistent energy shortages and fiscal pressures.

“The economic team is already facing stiff questions, and this move has only added to the complexities of the talks,” a government official involved in the negotiations was quoted as saying.

The IMF delegation, currently engaged in virtual discussions with Pakistani officials, is expected to hold a separate session focused on the Bitcoin and AI electricity plan.

Read: In a first, Pakistan establishes its govt-led strategic Bitcoin reserve

The electricity allocation is tied to the formation of the Pakistan Digital Asset Authority (PDAA), a new body approved by the Finance Ministry on May 21. The PDAA will regulate digital asset platforms, including exchanges, wallets, stablecoins, and decentralized finance (DeFi) systems. It will also oversee the tokenization of national assets in compliance with global standards, such as those set by the Financial Action Task Force (FATF).

This development follows Pakistan’s announcement of its first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference, where Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, also introduced a national Bitcoin wallet and reaffirmed the government’s support for the digital asset sector.