IMF Shuts Down Pakistan’s Controversial Plan to Subsidize Crypto Mining Power
Pakistan's attempt to lure crypto miners with taxpayer-funded electricity subsidies just got crushed by the IMF.
The move exposes the growing tension between developing nations hungry for crypto investment and global financial watchdogs.
While miners chase cheap power, traditional finance gatekeepers keep slamming the door—some things never change.
"A fundamental tension"
"The IMF's rejection highlights a fundamental tension: crypto mining can bring economic gains, but not at the cost of destabilizing already stressed infrastructure,” Mohit Agadi, founder of Fact Protocol and formerly of now-defunct bitcoin mining firm Cryptobond, told Decrypt.
“While crypto adoption is growing, sustainability and economic equity must be prioritized,” Agadi said. “Countries looking to benefit from Web3 must first ensure foundational systems like energy are resilient and inclusive.”
Last month, the Fund raised concerns over the country’s plans to allocate 2,000 megawatts of electricity to Bitcoin mining and AI data centres.
The government failed to consult the IMF on the move, triggering concerns over energy shortages and fiscal risks, as per a report by local media outlet Samaa.
Pranav Agarwal, independent director at Jetking Infotrain India—the country’s first listed Bitcoin treasury company, suggests a more measured approach that prioritizes sustainability and gradual implementation.
"Pakistan can start with a lower power consumption and explore tapping into their hydel power potential or solar farms to host the Bitcoin miners,” Agarwal told Decrypt. “Over time, the value would be evident for IMF and other stakeholders in the government.”
Pakistan embraces crypto
Pakistan's crypto embrace over the past few months includes establishing the Pakistan Crypto Council, appointing former Binance CEO Changpeng Zhao as strategic advisor, and creating the Pakistan Digital Assets Authority in March.
The MOVE was followed by the appointment of Bilal Bin Saqib as special assistant to the prime minister on blockchain and cryptocurrency.
Saqib, who also advises the Trump-linked crypto project World Liberty Financial, later announced at the Bitcoin 2025 conference in Las Vegas the creation of Pakistan's strategic Bitcoin reserve, vowing that the country would “never, ever sell” its holdings.
