IMF Questions Pakistan’s Plan to Allocate 2,000 MW for Bitcoin Mining and AI Data Centers

Key Takeaways:

• The IMF has raised concerns regarding Pakistan’s plan to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers.
• Issues highlighted include legal uncertainties surrounding crypto mining and potential strain on the national power grid.
• Pakistan is advancing a broader national strategy for digital assets and blockchain technology.

The International Monetary Fund (IMF) is challenging Pakistan’s initiative to allocate 2,000 megawatts of electricity specifically for Bitcoin mining and artificial intelligence (AI) data centers, as the country navigates critical financial negotiations with the Fund.

This initiative, announced last week, aims to attract blockchain firms, AI companies, and cryptocurrency miners to Pakistan.

However, according to a report by local outlet Samaa, the IMF has flagged several concerns, primarily focusing on the legal status of crypto mining in the country and the potential burden on its already fragile power grid.

IMF Seeks Urgent Clarification on Pakistan’s Crypto Mining Plan

The IMF was reportedly not consulted prior to the announcement and is now seeking urgent clarification from the Finance Ministry.

Given Pakistan’s chronic energy shortages and inflationary pressures, the Fund has also warned about potential knock-on effects on power tariffs and resource distribution.

“There is a fear of further tough talks from the IMF on this initiative,” an official involved in the negotiations told Samaa.

“The economic team is already facing stiff questions, and this move has only added to the complexities of the talks.”

While I’m an optimist by nature and I really hope I’m wrong, I think Pakistan will struggle to follow through on its Bitcoin and Bitcoin mining plans
Short answer why: IMF
Mid-sized answer why:
* Bitcoin is a huge threat to IMF in 5 ways.
* Pakistan are heavily indebted… pic.twitter.com/4t4BO6Keqm

— Daniel Batten (@DSBatten) May 31, 2025

The IMF delegation, currently holding virtual discussions with Pakistani authorities, is expected to hold a dedicated session on the electricity plan for Bitcoin mining and AI data centers in the coming days.

This power allocation is part of a wider national strategy to integrate digital assets into Pakistan’s economy.

A key component of this strategy is the new Pakistan Digital Asset Authority (PDAA), approved by the Finance Ministry on May 21.

The PDAA will oversee the regulation of exchanges, wallets, stablecoins, decentralized finance (DeFi) platforms, and the tokenization of national assets in line with global standards, including those of the Financial Action Task Force (FATF).

Pakistan Launches Strategic Bitcoin Reserve

This move follows Pakistan’s surprise debut of its first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference last week.

During the event, Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, unveiled plans for a national Bitcoin wallet and reaffirmed the government’s support for the digital asset sector.

Pakistan began shifting its crypto policy earlier this year with the proposal of a “National Crypto Council,” tasked with building a regulatory framework and driving foreign investment into the country’s emerging crypto ecosystem.

Last week, Prime Minister Shehbaz Sharif elevated Bilal Bin Saqib to the role of Special Assistant to the PM on Blockchain and Crypto, granting him the status of a minister of state.

As Special Assistant, Saqib will be tasked with key responsibilities: drafting FATF-compliant crypto regulations, launching state-backed Bitcoin mining projects, and overseeing blockchain integration in governance, land records, and finance.

He will also supervise the licensing of virtual asset service providers and advance investor protection measures in the Web3 space.