The IMF has expressed serious concerns over Pakistan’s decision to allocate 2,000 megawatts of electricity to Bitcoin mining and AI data centers amid ongoing financial negotiations, questioning the legal and fiscal implications of the move.
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The International Monetary Fund (IMF) has raised alarms regarding Pakistan’s recently announced plan to allocate 2,000 megawatts of electricity to support Bitcoin mining operations and artificial intelligence (AI) data centers. The concern emerges at a critical time, as Pakistan is engaged in ongoing discussions with the IMF tied to its extended financial program.
The initiative was revealed last week as part of a broader national strategy aimed at attracting investment from global blockchain and AI companies. However, the IMF has reportedly requested urgent clarification from Pakistan’s Finance Ministry about the legality of cryptocurrency mining in the country and the economic viability of dedicating such a significant portion of the national power supply to these operations.
According to a report published by local news outlet Samaa, the IMF is particularly concerned about the strain this decision may place on Pakistan’s already fragile power grid, which has been facing chronic energy shortages for years. The Fund is also evaluating how the move could affect power tariffs for ordinary citizens and the equitable distribution of energy resources.
An official familiar with the situation indicated that the IMF was not informed ahead of the announcement and is now questioning both the legal status of cryptocurrencies in Pakistan and the transparency of the decision-making process. “There is a fear of further tough talks from the IMF on this initiative,” the source said. “The economic team is already facing stiff questions, and this move has only added to the complexities of the talks.”
In response to the concerns, the IMF is expected to convene a separate session dedicated entirely to reviewing Pakistan’s electricity plan for Bitcoin mining and AI operations. The session will be part of ongoing virtual discussions between IMF representatives and Pakistani authorities.
This controversial energy allocation is a cornerstone of Pakistan’s larger digital economy transformation. Central to this shift is the creation of the Pakistan Digital Asset Authority (PDAA), which was officially approved by the Finance Ministry on May 21. The PDAA will be tasked with regulating cryptocurrency exchanges, wallets, stablecoins, decentralized finance (DeFi) platforms, and the tokenization of national assets. Its regulatory model is being designed in alignment with global standards, including those set by the Financial Action Task Force (FATF).
The debate comes just days after Pakistan made a bold statement at the Bitcoin Vegas 2025 conference by announcing the establishment of its first strategic Bitcoin reserve. Speaking at the event, Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, also introduced plans for a government-supported national Bitcoin wallet and reiterated the administration’s commitment to growing the country’s digital asset ecosystem.
Pakistan’s crypto-forward trajectory began earlier this year with the proposed formation of a “National Crypto Council” in February 2025. The council is tasked with creating a comprehensive regulatory framework and drawing foreign investment into Pakistan’s expanding blockchain sector. Initial proposals from the council include repurposing surplus energy for digital infrastructure, including mining and data centers, as well as formally building a national Bitcoin reserve.
While the government’s ambitions mark a new era for digital finance in Pakistan, the IMF’s intervention may force a more cautious and legally grounded approach moving forward.
