The International Monetary Fund (IMF) has raised serious concerns over Pakistan’s decision to allocate 2,000 megawatts of electricity to support Bitcoin mining and AI data centers. This move, unveiled as part of Pakistan’s broader strategy to embrace digital finance, has triggered alarms during ongoing financial negotiations between the IMF and Islamabad.

The plan aims to attract blockchain miners and AI firms by offering dedicated power resources, but the IMF was reportedly not consulted. Now, the Fund is pressing Pakistan’s Finance Ministry for urgent clarification, particularly on the legality of crypto mining and its potential strain on the country's fragile energy grid. With Pakistan already battling chronic energy shortages and budgetary challenges, the IMF fears the initiative could worsen existing fiscal pressures and distort power tariffs.

The IMF is reportedly planning a special session with Pakistani officials to address the electricity allocation and its broader implications. The concerns come just days after Pakistan’s debut of its national Bitcoin reserve at the Bitcoin 2025 conference in Las Vegas, where officials also revealed the upcoming launch of a national Bitcoin wallet.

This push into digital assets follows the government’s formation of the Pakistan Digital Asset Authority (PDAA), tasked with regulating exchanges, wallets, stablecoins, DeFi platforms, and tokenized national assets. Approved on May 21, the PDAA is central to Pakistan’s attempt to integrate blockchain into its economy under global regulatory standards like those of the FATF.

In February, Pakistan proposed a National Crypto Council to oversee policy, attract investment, and advise on mining strategies. High-profile crypto figure Changpeng Zhao, co-founder of Binance, joined as an adviser in April.

While Pakistan signals ambition in the crypto space, international scrutiny is intensifying — with the IMF now questioning whether the country’s bold pivot is sustainable.