International Monetary Fund Urges Caution in Pakistan's Ambitious Bitcoin Mining Venture
Pakistan has recently announced its first strategic Bitcoin reserve, which includes plans for a national Bitcoin wallet and a substantial allocation of energy resources for the digital asset ecosystem. However, the International Monetary Fund (IMF) has expressed concerns about the decision to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers.
The IMF delegation, currently conducting virtual discussions with Pakistani authorities, has requested urgent clarification regarding the legal status of the initiative and the planned electricity allocations. The IMF's inquiry comes amid concerns over Pakistan's ongoing energy shortages and broader fiscal challenges.
The announcement was made by Bilal Bin Saqib, CEO of Pakistan's Crypto Council, during the 2025 Bitcoin Conference. The initiative is expected to attract interest from independent cryptocurrency miners, technology firms, and blockchain companies seeking to invest in Pakistan. However, the IMF was not briefed prior to the announcement, which has raised concerns about the legal framework governing cryptocurrencies in Pakistan.
Pakistan has established regulatory bodies such as the Pakistan Crypto Council (PCC) and Pakistan Digital Assets Authority (PDAA) to oversee digital asset activities. The government seeks to develop a comprehensive legal framework under FATF guidelines, ensuring licensing of virtual asset providers and building a strategic Bitcoin reserve to provide regulatory clarity and investor protection.
While Pakistan argues that allocating surplus power that would otherwise be unused or result in capacity charges makes economic sense, the IMF is cautious given Pakistan’s ongoing energy sector challenges, fiscal strain, and the need to balance energy demands. Potential risks include energy reliability, environmental impact, and grid stability.
The IMF’s concerns stem from ensuring Pakistan’s energy policy supports macroeconomic stability without exposing the country to risks from speculative or energy-intensive digital sectors lacking robust oversight. Pakistan’s collaboration with El Salvador and adherence to IMF programs aim to introduce energy-efficient mining practices and a balanced approach.
In summary, Pakistan is pursuing a pioneering initiative that taps surplus electricity for Bitcoin mining and AI data centers backed by emerging regulatory frameworks. However, the IMF remains cautious regarding the legal clarity, regulatory robustness, and potential energy supply risks, urging Pakistan to ensure that energy allocation aligns with broader economic and environmental sustainability goals.
The International Monetary Fund (IMF) has requested urgent clarification from Pakistani authorities about the legal status of Pakistan's strategic Bitcoin reserve, particularly concerning the electricity allocations for Bitcoin mining and AI data centers, due to concerns over ongoing energy shortages and broader fiscal challenges.
The IMF is cautious about Pakistan's Bitcoin initiative, as they aim to ensure that Pakistan's energy policy supports macroeconomic stability without exposing the country to risks from speculative or energy-intensive digital sectors lacking robust oversight.
Given the IMF's concerns, it is crucial for Pakistan to provide regulatory clarity and establish a robust legal framework for digital assets, as the country develops its Bitcoin reserve and attracts investments from technology firms and blockchain companies.
