The International Monetary Fund (IMF) is seeking urgent clarification from Pakistan regarding its recent decision to allocate 2,000 megawatts of electricity to Bitcoin mining and AI data centers, amid concerns over the country’s ongoing electricity shortages and fiscal challenges .
The Controversial Power Allocation
Last week, Pakistan made headlines when it announced plans to dedicate 2,000 megawatts of power—enough electricity to power approximately 1.5 million homes—to cryptocurrency mining operations and artificial intelligence data centers . The announcement came as part of Pakistan’s broader strategy to integrate digital assets into its economy, but has quickly drawn scrutiny from the IMF, which recently approved a $2.4 billion loan for the country .
According to sources familiar with the matter, Pakistan’s Finance Ministry did not consult with the IMF before announcing this significant power allocation plan. The IMF has now scheduled a separate virtual session specifically to discuss this electricity allocation with Pakistani officials .
An official involved in budget negotiations with the IMF expressed concern about the situation, stating: “There is a fear of further tough talks from the IMF on this initiative. The economic team is already facing stiff questions, and this move has only added to the complexities of the ongoing talks” .
Pakistan’s Crypto Ambitions
The power allocation is just one component of Pakistan’s rapidly evolving approach to cryptocurrency. The country has taken several significant steps toward embracing digital assets in recent months:
• Establishment of the Pakistan Crypto Council (PCC) to regulate and promote cryptocurrency adoption
• Creation of the Pakistan Digital Asset Authority (PDAA) on May 21, which will regulate exchanges, wallets, stablecoins, and DeFi platforms
• Appointment of former Binance CEO Changpeng Zhao as a strategic advisor to the Crypto Council
• Unveiling of Pakistan’s first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference
• Launch of a national Bitcoin wallet
Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, highlighted the country’s digital potential during the Bitcoin 2025 conference, noting: “Our youth are online and on-chain. Pakistan, with over 40 million crypto wallets and an average age of 23 years, is now being recognized for its future rather than its past” .
IMF Concerns and Implementation Plans
The IMF has consistently warned countries against government Bitcoin investments and has emphasized that nations receiving aid under the Extended Fund Facility must consult on all policy changes . The organization is particularly concerned about how Pakistan’s Bitcoin mining initiative will impact electricity tariffs and distribution in a country that has historically struggled with power shortages .
Pakistan plans to repurpose three underutilized coal power plants to provide the electricity needed for Bitcoin mines and AI data centers . This comes after Pakistan’s National Electric Power Regulatory Authority announced cuts to electricity prices for various consumers in April, following an increase in base power tariffs last year .
The Energy Equation
Bitcoin mining is notoriously energy-intensive. The process involves high-powered computers solving complex cryptographic puzzles to validate transactions and secure the network. Global Bitcoin mining operations consume approximately 160 terawatt-hours annually, comparable to Poland’s entire power usage .
In Pakistan’s context, the 2,000 megawatts allocated could power thousands of mining rigs, each consuming as much electricity as three air conditioners . This significant energy commitment raises questions about resource allocation in a country where power infrastructure has historically been strained.
As Pakistan continues its ambitious push into the cryptocurrency space, the outcome of its discussions with the IMF will likely shape how the country balances its digital aspirations with its existing economic challenges and energy needs.
