The International Monetary Fund (IMF) hopes Pakistan will urgently clarify its plans to allocate power to Bitcoin mining amid the country’s electricity shortage and fiscal issues, according to a local news report. The IMF delegation is expected to hold another virtual session with Pakistan’s Ministry of Finance to discuss power allocation in detail.
Last week, Pakistan announced that it would allocate 2,000 megawatts of electricity to operations in its Bitcoin mines and artificial intelligence (AI) data centres.
The IMF has repeatedly warned countries about the government’s risk of purchasing Bitcoin, authorizing $2.4 billion in loans to Pakistan earlier this month, and is currently discussing budget plans with the country.
According to sources from the Ministry of Finance, Pakistan did not loop through the IMF in its planning for power allocation to Bitcoin mining. However, citing sources familiar with the issue, the local news report states that the IMF has repeatedly requested that the state receive assistance from the organization under the Extended Fund Facilities (EFF) for all policy changes.
Officials involved in budget negotiations with the IMF told local news outlet Samaa.
“We fear even more stringent consultations from the IMF about this initiative (which would allocate electricity to bitcoin mining). The economic team is already facing tough questions, and this move is only adding to the complexity of ongoing consultations.”
Pakistan plans to reuse three underutilized coal power plants to power Bitcoin mines and AI data centres. However, the IMF is concerned about how the initiative will affect electricity bills and distribution.
In April, Pakistan’s national electricity regulator announced cuts in electricity prices for various consumers. However, the cuts followed an increase in basic tariffs announced last year.
Pakistan is making rapid progress in accepting code
Over the past few months, Pakistan has rapidly changed its stance on cryptocurrency, and has announced several plans and initiatives to adopt and regulate crypto assets.
In March, the country established the Pakistan Cryptocourse (PCC) to regulate crypto assets, boost adoption, and integrate them into Pakistan’s financial environment. In early April, Pakistan appointed former Vinance CEO Changpeng Zhao (CZ) as the council’s strategic advisor.
Late last month, World Liberty Financial, a decentralized financial project with close ties to President Donald Trump and his sons, signed a memorandum of understanding (MOU) with the PCC.
On May 21, following the recommendations of the PCC, the government established the Pakistan Digital Assets Authority (PDAA).
The PDAA oversees the licenses of digital asset service providers, ensures compliance with Financial Action Task Force (FATF) regulations, and acts as a regulatory watchdog that promotes innovation.
At the Bitcoin 2025 conference on Thursday, Prime Minister Shebaz Sharif’s crypto advisor, Bilal bin Saqib, announced the country’s first strategic Bitcoin sanctuary, sparking scrutiny by the IMF. Saqib, who also announced the launch of the National Bitcoin Wallet, said:
“Our youth are online and on-chain, and Pakistan has an average age of over 40 million crypto wallets and a 23-year-old, recognized in the future, not past.”