Pakistan is facing scrutiny from the International Monetary Fund (IMF) over its plans to allocate power to Bitcoin mining amid electricity shortages and fiscal problems. The IMF delegation is set to discuss this issue with Pakistan’s Finance Ministry in a virtual session.
Last week, Pakistan announced its decision to allocate 2,000 megawatts of power to Bitcoin mines and AI data centers. However, the IMF, which has cautioned against governments investing in Bitcoin, is concerned about the impact on electricity tariffs and distribution.
Finance Ministry sources revealed that Pakistan did not inform the IMF about its plans for power allocation to Bitcoin mining. The IMF has emphasized the importance of consulting on all policy changes for countries receiving aid under the Extended Fund Facility (EFF).
An official involved in the budget negotiations with the IMF expressed concerns about facing tough talks due to the initiative of allocating electricity to Bitcoin mining. The move to repurpose underutilized coal power plants for this purpose has added complexity to the ongoing discussions.
Despite these challenges, Pakistan has been making strides towards embracing cryptocurrencies. The establishment of the Pakistan Crypto Council (PCC) in March aimed to regulate and integrate crypto assets into the financial landscape. Appointing former Binance CEO Changpeng Zhao as a strategic advisor further showcased Pakistan’s commitment to crypto adoption.
Recently, the government established the Pakistan Digital Assets Authority (PDAA) to oversee the licensing of digital asset service providers and ensure compliance with regulatory standards. The country also unveiled its first strategic Bitcoin reserve at the Bitcoin 2025 conference, signaling a shift towards embracing the future of digital assets.
With over 40 million crypto wallets and an average age of 23 years, Pakistan is positioning itself as a leader in the crypto space. The IMF’s scrutiny highlights the challenges and opportunities that come with adopting cryptocurrencies in a rapidly evolving financial landscape.
As Pakistan navigates these complexities, the country’s commitment to embracing digital assets and regulating their use will be crucial in shaping its economic future. The IMF’s concerns underscore the need for careful planning and consultation in implementing policies related to Bitcoin mining and cryptocurrency regulation.