Summary:
- Pakistan plans to allocate 2,000 MW of electricity for Bitcoin mining and AI data centers.
- The move aims to boost blockchain and crypto industries via the newly created Pakistan Digital Asset Authority (PDAA).
- The IMF has raised serious concerns about legality, power grid strain, and financial risks.
- Bilal bin Saqib, Special Assistant to the PM on Blockchain and Crypto, supports the plan, promising FATF-compliant regulations and state-backed projects.
- The ongoing tension complicates Pakistan’s financial negotiations with the IMF.
Introduction
Pakistan’s crypto mining plan has recently sparked a heated debate involving the International Monetary Fund (IMF), energy authorities, and government officials. At the heart of the discussion is a bold decision to allocate a substantial 2,000 megawatts of electricity to support Bitcoin mining and artificial intelligence (AI) data centers — a move that represents the country’s push into the digital assets arena but raises pressing concerns about energy sustainability and regulatory clarity.
What Is Pakistan’s Crypto Mining Plan?
In an effort to position itself as a hub for blockchain technology and crypto innovation, Pakistan unveiled a strategy to attract foreign blockchain firms, AI companies, and crypto miners by allocating dedicated power resources. The country recently approved the creation of the Pakistan Digital Asset Authority (PDAA), which will regulate exchanges, wallets, stablecoins, and DeFi platforms to align with global standards, including those set by the Financial Action Task Force (FATF).
Additionally, Pakistan has launched its first strategic Bitcoin reserve, aiming to boost confidence in digital assets and promote their integration into the economy.
IMF’s Concerns and Economic Implications
However, the IMF was caught off guard by this announcement, having not been consulted beforehand. The Fund has raised multiple concerns:
- The legal status of crypto mining in Pakistan is uncertain.
- Allocating 2,000 MW risks worsening energy shortages in a country already battling chronic power deficits.
- The move could lead to increased electricity tariffs and further inflationary pressures.
- These concerns have complicated Pakistan’s ongoing financial negotiations with the IMF.
An official involved in the talks told Samaa, “There is a fear of further tough talks from the IMF on this initiative… The economic team is already facing stiff questions, and this move has only added to the complexities of the talks.”
The Role of the Pakistan Digital Asset Authority (PDAA)
The PDAA, approved by the Finance Ministry, is tasked with creating a regulatory framework to supervise the crypto ecosystem. This includes licensing virtual asset service providers, enforcing investor protection measures, and ensuring Pakistan’s compliance with FATF guidelines — a crucial step to gain international legitimacy.
Government Support and Key Statements
Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif and recently appointed Special Assistant on Blockchain and Crypto, emphasized the government’s commitment at the Bitcoin Vegas 2025 conference:
“We are dedicated to drafting FATF-compliant crypto regulations, launching state-backed Bitcoin mining projects, and integrating blockchain technology into governance, land records, and finance.”
His role will also involve supervising licensing and protecting investors in Pakistan’s burgeoning Web3 space.
What Lies Ahead for Pakistan’s Crypto Ecosystem
Pakistan’s plan could position it as a digital pioneer in South Asia, attracting investment and innovation in blockchain and AI. However, balancing this ambition with energy sustainability and financial discipline will be critical.
The next few months will be decisive, as the government negotiates with the IMF and develops clear regulatory policies through the PDAA.
Conclusion
The Pakistan crypto mining plan marks an ambitious step into the future but faces challenges from the IMF and energy sector realities. With strong government backing and a focus on compliance and regulation, Pakistan hopes to turn this plan into a success story — provided it can navigate economic and infrastructural hurdles carefully.