IMF Shuts Down Pakistan’s Bitcoin Mining Energy Plan – A Major Blow to Crypto Dreams?

The International Monetary Fund just dropped a regulatory hammer on Pakistan’s crypto ambitions—rejecting its proposed energy plan for Bitcoin mining. Here’s why it matters.

No Cheap Power for Crypto Miners

Pakistan wanted to leverage surplus energy to attract Bitcoin miners, but the IMF wasn’t having it. Another case of traditional finance clipping crypto’s wings before takeoff.

What’s Next for Pakistan’s Crypto Push?

Without IMF approval, the country’s plan to become a mining hub stalls. Meanwhile, miners will keep flocking to places where electricity is cheap—and regulators look the other way.

The Irony of ‘Financial Inclusion’

Funny how the same institutions preaching economic growth keep shutting doors on innovation. Maybe they prefer their monopolies un-disrupted.

IMF Flags Several Concerns Against Pakistan’s Power Proposal for Bitcoin Mining

Last month, the IMF questioned Pakistan’s power push for Bitcoin mining, raising concerns over legal issues and power strain.

The international financial body laid out several concerns, including the legality of crypto mining in Pakistan and the additional strain on the already burdened power grid.

The @IMFNews is pushing back on Pakistan’s plan to allocate 2,000 megawatts of electricity for bitcoin mining and AI data centers.#IMF #Bitcoinhttps://t.co/X9YHqz9qTO

Further, the fund warned about resource distribution and knock-on effects on power tariffs. The IMF noted that Pakistan did not consult the fund ahead of the announcement.

In May, Pakistan announced that it will allocate 2,000MW to power crypto mining and data centres, in a MOVE to attract foreign investment. The initiative is driven by the Pakistan Crypto Council and supported by the Ministry of Finance.

Pakistan in Talks With International Institutions

Dr Irfan confirmed that the government is still in talks to redefine its power subsidiary plan after the IMF has rejected the proposal.

The committee further discussed technological solutions aimed at combating electricity theft.

They also discussed the government’s recent agreement with scheduled banks to reduce the circular debt stock. Senator Shibli Faraz criticised that banks were “forced at gunpoint” to offer the loans.

The committee has directed the Power Division to submit comprehensive answers to various issues at the next meeting.