IMF Seeks Clarification on Pakistan's 2,000 Megawatt Bitcoin Mining Plan

The International Monetary Fund (IMF) has requested urgent clarification from Pakistan regarding its plans to allocate 2,000 megawatts of power to Bitcoin mining. This move comes amidst Pakistan's electricity shortages and fiscal challenges. The IMF delegation is set to hold a separate virtual session with Pakistan’s Finance Ministry to discuss the electricity allocation specifically.

Last week, Pakistan announced its intention to allocate 2,000 megawatts of power for the operation of Bitcoin mines and artificial intelligence (AI) data centers. The IMF, which has previously warned countries about the risks of governments buying Bitcoin, approved a $2.4 billion loan for Pakistan earlier this month and is currently in discussions with the country about its budgetary plans.

According to sources from the Finance Ministry, Pakistan did not consult the IMF regarding its plans for power allocation to Bitcoin mining. However, the IMF has reiterated its demand that countries receiving aid under the Extended Fund Facility (EFF) consult on all policy changes. An official involved in the budget negotiations with the IMF expressed concerns about further tough talks from the IMF on this initiative, stating that the economic team is already facing stiff questions, and this move has only added to the complexities of the ongoing talks.

Pakistan plans to repurpose three underutilized coal power plants to provide electricity to Bitcoin mines and AI data centers. However, the IMF is concerned about how this initiative will impact electricity tariffs and distribution. In April, Pakistan’s National Electric Power Regulatory Authority announced cuts to electricity prices for a range of consumers, following an increase in base power tariffs announced last year.

Pakistan has been rapidly embracing cryptocurrencies over the past few months, announcing several plans and initiatives to adopt crypto assets and regulate them. In March, the country established the Pakistan Crypto Council (PCC) to regulate crypto assets, boost their adoption, and integrate them into Pakistan’s financial landscape. In early April, Pakistan appointed former Binance CEO Changpeng Zhao as a strategic advisor to the council. Late last month, World Liberty Financial, a decentralized finance project with close ties to President Donald Trump and his sons, signed a Memorandum of Understanding (MoU) with PCC. On May 21, following the recommendation of the PCC, the government established the Pakistan Digital Assets Authority (PDAA), an event attended by U.S. Vice President JD Vance as well as Trump’s sons, Eric and Donald Trump Jr. The PDAA would serve as a regulatory watchdog responsible for overseeing the licensing of digital asset service providers, ensuring compliance with the Financial Action Task Force’s (FATF) regulations, and promoting innovation. At the Bitcoin 2025 conference on Thursday, Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, unveiled the country’s first strategic Bitcoin reserve, drawing the IMF’s scrutiny. Saqib, who also announced the launch of a national Bitcoin wallet, noted: “Our youth are online and on-chain. Pakistan, with over 40 million crypto wallets and an average age of 23 years, is now being recognized for its future rather than its past.”