The International Monetary Fund (IMF) has turned down Pakistan’s proposal to allocate 2,000 megawatts of subsidized electricity for Bitcoin mining and AI data centers. Key concerns involve the strain on the country's power infrastructure and legal ambiguity.
Strain on Infrastructure & Legal Risks
According to government sources, the IMF warned that diverting power for mining could disrupt the country’s energy balance and lead to wider tariff implications. The legal framework for cryptocurrency in Pakistan is still in development, raising additional red flags. The IMF has previously discouraged sector-specific concessions, arguing they could resemble harmful tax holidays that disrupt economic parity. Notably, a similar attempt in 2024 to offer electricity at marginal cost for six months did not result in any uptake.
Government Seeking Alternatives
Despite the IMF’s objections, Pakistan is still exploring ways to support its digital economy ambitions. Discussions are ongoing with global partners like the World Bank to find a revised model that aligns with economic and legal standards. The government is determined to use surplus electricity to power blockchain innovation and AI expansion while ensuring compliance with international guidelines.
Pakistan’s Broader Crypto Push
Earlier in 2025, Pakistan announced plans to build a national Bitcoin reserve and develop regulatory infrastructure with support from global crypto leaders. The country aimed to become a regional hub for blockchain technology, allocating significant energy resources to support this vision. However, balancing these ambitions with infrastructure capacity and fiscal responsibility remains a key challenge.
The IMF's rejection of Pakistan’s plan raises questions about the sustainability and legal framework for crypto mining in the country, while the government continues to seek paths for digital sector development.
