- IMF questions Pakistan’s electricity allocation for Bitcoin amid shortages.
- Concerns over unilateral decisions affect ongoing IMF discussions.
- Possible pressure on Pakistan’s economic strategies and reserve management.
The International Monetary Fund (IMF) has requested urgent clarification from Pakistan regarding its allocation of 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence data centers as announced on June 2, 2025.
Pakistan’s commitment of substantial power resources to Bitcoin mining raises concerns given its existing energy shortages. The IMF’s request highlights potential impacts on fiscal stability and resource allocation, influencing ongoing discussions between Pakistan and international financial bodies.
The IMF’s request comes after Pakistan announced its plan to allocate 2,000 megawatts of electricity to support Bitcoin mining and AI data centers. This decision aligns with Pakistan’s strategic push for digital asset growth. Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, is key to this initiative, which includes launching a national Bitcoin wallet. This move aims to establish a national Bitcoin reserve.
“The initiative includes plans for a national Bitcoin wallet and the allocation of energy resources to support Pakistan’s digital asset ecosystem.” – Bilal Bin Saqib, CEO, Pakistan’s Crypto Council
Pakistan’s economic landscape shows increased reserves to $10.3 billion and efforts to stimulate economic activity by reducing interest rates by 1,100 basis points. Still, the decision to allocate power to Bitcoin has drawn IMF scrutiny over concerns of resource distribution in a country facing chronic energy shortages.
The IMF delegation continues to probe Pakistan’s cryptocurrency initiative, reportedly holding discussions with officials from Pakistan’s Finance Ministry. The legal standing of cryptocurrencies in Pakistan remains under review, adding complexity to national and international economic dialogues centered around this new allocation strategy.
Officials have expressed anxiety over the IMF’s intensified focus and its implications on current economic strategies. These developments heighten tensions between leveraging crypto technology for economic development and adherence to regulatory frameworks advocated by global financial institutions.
The trends observed in Pakistan mirror wider cryptocurrency strategies among developing nations. However, this introduces potential fiscal discipline challenges and regulatory considerations regarding digital asset integration into traditional economic systems. The ongoing discussions and reviews of power allocation plans will likely shape future policy and financial dialogues.