IMF Raises Concerns Over Pakistan's 2,000 Megawatt Bitcoin Mining Plan

The International Monetary Fund (IMF) has expressed significant concerns over Pakistan's plan to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers. This initiative, announced last week, is designed to attract autonomous miners, blockchain companies, and AI firms to Pakistan. However, the IMF has raised red flags about the move, requesting urgent clarification from the Finance Ministry regarding the legality of crypto mining and the power allocations, particularly as the nation struggles with chronic energy shortages and fiscal pressures.

The IMF was not consulted prior to the announcement and is questioning the legal standing of cryptocurrencies in Pakistan. The Fund has also voiced concerns over potential impacts on power tariffs and resource distribution. There is a fear of further tough talks from the IMF on this initiative, as the economic team is already facing stiff questions, and this move has only added to the complexities of the talks.

The IMF delegation, currently conducting virtual discussions with Pakistani officials, is expected to schedule a separate session dedicated to the government’s electricity plan for Bitcoin mining and AI operations. The electricity allocation is part of a wider national strategy to integrate digital assets into Pakistan’s economy. A key component of this plan is the establishment of the Pakistan Digital Asset Authority (PDAA), approved by the Finance Ministry. The PDAA will regulate exchanges, wallets, stablecoins, and DeFi platforms while overseeing the tokenization of national assets in line with international frameworks.

The development follows Pakistan’s high-profile debut of its first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference last week — an event signaling Islamabad’s pivot toward digital finance. During the conference, Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, announced the launch of a national Bitcoin wallet and the government’s commitment to support the digital asset sector.

Pakistan’s government began shifting its stance on cryptocurrencies earlier this year with the proposal of a “National Crypto Council” in February 2025. The body was tasked with drafting a comprehensive regulatory framework for digital assets and attracting foreign investment to the country’s growing crypto ecosystem. Among the Council’s early proposals were plans to utilize surplus energy for Bitcoin mining and data center operations, as well as building a national Bitcoin reserve. Changpeng Zhao, co-founder of Binance, was also appointed as an adviser to the Council in April. In this role, he is expected to provide guidance on crypto regulations, blockchain infrastructure, and digital asset adoption.

The IMF's concerns highlight the delicate balance between economic innovation and the practical constraints of energy supply. The allocation of 2,000 megawatts for these purposes could divert much-needed power from essential services, potentially leading to widespread disruptions. This is particularly concerning given the current energy shortages and the ongoing budget talks, which are crucial for Pakistan's economic stability.

The IMF's intervention underscores the broader implications of such a plan. While the idea of leveraging unused electricity for profitable ventures like Bitcoin mining is appealing, it must be weighed against the potential risks to the national power grid. The IMF's concerns are not merely about the immediate impact but also about the long-term sustainability of such a policy. The energy-intensive nature of Bitcoin mining could lead to a vicious cycle where the demand for electricity outstrips supply, leading to further shortages and economic instability.

Moreover, the IMF's concerns reflect a broader global debate on the environmental and economic impacts of cryptocurrency mining. The energy consumption of Bitcoin mining has been a contentious issue, with critics arguing that it contributes to carbon emissions and environmental degradation. Pakistan's plan to allocate a significant portion of its electricity to this sector raises questions about the country's commitment to sustainable development and its ability to manage its energy resources effectively.

In conclusion, the IMF's concerns over Pakistan's Bitcoin mining power plan highlight the complex interplay between economic innovation and energy sustainability. While the plan to utilize unused electricity for Bitcoin mining and AI data centers is innovative, it must be carefully balanced against the potential risks to the national power grid and the broader economic implications. The IMF's intervention serves as a reminder that such policies must be implemented with a clear understanding of their long-term impacts and the need for sustainable energy management.