IMF Sounds Alarm Over Pakistan’s Bitcoin Mining Gamble

Pakistan’s push into Bitcoin mining has drawn sharp scrutiny from the IMF—because when has mixing volatile crypto with a struggling economy ever backfired?

The global lender isn’t convinced the energy-intensive plan will offset the country’s financial woes. Mining rigs guzzle power, and Pakistan’s grid already stumbles under blackouts. But hey, maybe they’ll mine their way out of debt—or just add ’crypto bust’ to their list of crises.

One thing’s certain: the IMF won’t be bailing out any failed moon-shot mining ops. Tick-tock on that loan repayment clock.

In Brief

• The IMF demands explanations from Pakistan about the energy use related to the bitcoin mining plan.
• Pakistan launched a national wallet and a state reserve in bitcoin without prior consultation.
• 2,000 megawatts promised to mining raise concerns amid a historic and explosive energy crisis.
• 55% increase in electricity prices since 2021 fuels social anger that is hard to contain.

The IMF steps in: crypto under condition in Pakistan

Pakistan,, has decided to allocate 2,000 megawatts of electricity to bitcoin mining and AI data centers. The announcement was not discussed with the institution. A strategic error.regarding the legality of bitcoin in the country, as well as the energy allocation. Its concern: seeing vital energy diverted in favor of poorly regulated projects.

“There is a fear of even tougher discussions with the IMF over this initiative“, says a source close to the matter.

The IMF, which previously banned the accumulation of bitcoin in El Salvador, requires that. Pakistan’s response is pending, but the atmosphere is tense.

The consequences could be severe., or even worsen tensions on the debt markets. In the short term, this WOULD jeopardize funds intended to support the local economy. In the long term, it would further isolate the country in an already fragile economic context.

, which was supposed to symbolize openness and innovation, here becomes.

State Bitcoin: Boldness or recklessness?

This pro-crypto turnaround is no accident. In February 2025, the Pakistani government proposed the. Then, in May, the Pakistan Digital Asset Authority (PDAA) was created. It is responsible for regulating exchanges, wallets, stablecoins, and DeFi platforms. It is also tasked with supervising the tokenization of state assets.

The Bitcoin Vegas 2025 summit served as a showcase for this strategy. Bilal bin Saqib, the Prime Minister’s crypto advisor, unveiled. He also announced the launch of a national bitcoin wallet. According to him:

Our youth is connected and on the blockchain. Pakistan is now recognized for its future, not its past.

Among the unveiled projects:

• National bitcoin reserve;
• Official wallet supported by the state;
• Incentives to attract miners and developers;
• Legal framework aligned with FATF standards.

The idea?, attracting capital, startups, and technological expertise. In April, even Changpeng Zhao, former Binance CEO, was appointed advisor to the Crypto Council. He was to assist the country in setting up a blockchain infrastructure.

But this bold strategy has hit the wall of economic realism. Has Pakistan measured the geopolitical and fiscal implications? Or is it acting with a kind of insolence, openly defying the IMF? The answer could redraw the future of its digital ambitions.

Energy crisis: when bitcoin mines the people

Pakistan’s energy context is explosive. Since 2021, electricity prices have jumped 155%. The average cost reaches $0.23/kWh, pushing industries and households to turn to solar power. The infrastructure is outdated, line losses reach 16%, and outages are frequent. The country subsidizes inactive power plants while imposing tariff increases to satisfy the IMF. In July, residential prices increased again by 18%.

In this energy chaos, allocating 2,000 MW to bitcoin mining appears heretical. The country is already struggling to provide stable electricity to its people. The announcement thus raises a double concern: economic and social.

Some numbers to remember:

• 16% electricity lost due to technical inefficiencies
• 155% increase in prices in 4 years;
• $0.23/kWh: average household cost;
• 2,000 MW promised to miners despite massive outages;
• 40 million registered crypto wallets in Pakistan.

The risk is real: diverting energy to bitcoin data centers risks inflaming tensions. It would worsen energy poverty, fuel popular anger, and could provoke unrest. Investing in mining without solving the energy chaos would be like laying a minefield on an already unstable field.

The IMF sometimes revises its position. Did it not recently admit that there is no bitcoin accumulation for El Salvador? Pakistan should take inspiration from this momentum: engage in dialogue, structure a clear framework, and prove that mining can coexist with its commitments. Negotiating is not yielding, especially when innovation knocks at the door.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.