Pakistan’s decision to allocate 2,000 megawatts of electricity to Bitcoin mining and AI data centers has triggered scrutiny from the International Monetary Fund (IMF), raising tensions during ongoing fiscal negotiations.
The initiative, intended to attract blockchain and AI firms to enhance the country’s tech infrastructure, was announced without prior consultation with the IMF. The Fund has now requested urgent clarification from Pakistan’s Finance Ministry. Sources close to the matter indicate that the IMF is particularly alarmed by the legality of cryptocurrency mining and the strain it could place on a power grid already facing rolling blackouts.
The timing of the announcement comes as Islamabad seeks to secure additional support under the IMF’s Extended Fund Facility. According to local reports, the mining plan could complicate budget discussions, with one senior official stating it has “only added to the complexities” confronting Pakistan’s economic team.
The IMF is also reviewing the potential downstream impact of the plan on electricity tariffs and public access to energy. With costs already high and supply volatile, the Fund’s concerns reflect broader unease over whether crypto ambitions may undermine core infrastructure resilience.
IMF to Hold Special Review of Pakistan’s Mining Plan
The IMF is now preparing a special session with Pakistani officials to assess the scope and implications of the new mining initiative.
At the center of the plan is the Pakistan Digital Asset Authority (PDAA), a newly formed regulatory body approved by the Finance Ministry on May 21. The PDAA has been tasked with overseeing exchanges, wallets, stablecoins, and DeFi platforms, as well as leading the tokenization of national assets. Officials say its mandate will adhere to global regulatory standards, including those set by the Financial Action Task Force (FATF).
The IMF’s interest has been further piqued by Pakistan’s increasingly vocal embrace of digital assets. At the Bitcoin Vegas 2025 conference last week, Islamabad unveiled its first strategic Bitcoin reserve. Bilal bin Saqib, a crypto advisor to Prime Minister Shehbaz Sharif, also introduced a national Bitcoin wallet and emphasized the government’s commitment to nurturing a regulated crypto economy.
Despite the country’s forward-leaning rhetoric, IMF officials remain cautious. Key questions remain over how the power-intensive mining project fits within Pakistan’s constrained energy landscape and whether its legal and fiscal frameworks are mature enough to manage rapid digital adoption.
Pakistan Pushes Crypto Reforms to Attract Investment
Pakistan is pursuing an ambitious pivot toward crypto reform, aiming to create a regulated ecosystem that draws foreign investment and positions the country as a serious player in digital finance.
The shift gained traction in February 2025 with the proposed formation of a National Crypto Council—an official advisory body tasked with crafting a comprehensive blockchain and crypto regulatory strategy.
Among its first policy proposals was the redirection of excess national energy toward Bitcoin mining and AI data centers. The Council also backed Islamabad’s creation of a strategic Bitcoin reserve, furthering its vision of becoming a blockchain-forward nation.
In a bold move to enhance international credibility, Binance co-founder Changpeng Zhao was appointed as a strategic adviser to the Council in April. His mandate includes helping craft regulatory frameworks and guiding the country’s blockchain development strategy. The appointment signals Pakistan’s intent to align with global best practices and leverage international expertise to build a sustainable digital economy.
Quick Facts
- Pakistan allocated 2,000 MW of power to Bitcoin mining and AI centers.
- The IMF raised concerns about energy shortages and legal clarity.
- A new digital asset regulator (PDAA) was approved in May 2025.
- Binance’s CZ was appointed adviser to the National Crypto Council.
- Pakistan unveiled a strategic Bitcoin reserve at Bitcoin Vegas 2025.
