IMF Raises Concerns Over Pakistan’s Crypto Mining Power Allocation

ISLAMABAD: The IMF concerns over Pakistan crypto mining plans have escalated as the lender questioned the government’s allocation of 2,000 megawatts (MW) of electricity for cryptocurrency mining and artificial intelligence (AI) data centers, according to local media reports.

The International Monetary Fund (IMF) demanded specific details regarding the pricing mechanism for the electricity allocated to crypto operations. The issue surfaced during ongoing budget discussions for the 2025-26 fiscal year, where the IMF urged Pakistan not to offer subsidized electricity rates for mining and data operations, insisting on fiscal prudence.

The IMF concerns over Pakistan crypto mining come as the government seeks relief measures in the upcoming budget. However, the IMF has objected to several proposed tax exemptions and budget leniencies. The global lender continues to push Islamabad to adhere strictly to economic performance benchmarks under the $7 billion Extended Fund Facility.

Sources revealed that the IMF is pressing for tougher fiscal discipline, including the removal of tax breaks and an increase in excise duties on luxury and non-essential items, further tightening the fiscal space for Pakistan.

It’s worth noting that Pakistan’s government had earlier announced the allocation of 2,000MW of electricity to Bitcoin mining and AI data centers as part of a broader strategy aimed at monetizing excess power, attracting foreign investment, and creating high-tech employment.

Finance Minister Senator Muhammad Aurangzeb called the initiative a milestone in Pakistan’s digital evolution, emphasizing that surplus energy could be turned into global innovation, investment, and revenue. He stressed that the effort reflects a long-term economic strategy to generate foreign exchange by leveraging digital assets.

Pakistan Crypto Council CEO Bilal Bin Saqib also supported the initiative, stating that with effective regulation and international collaboration, the country could emerge as a global crypto and AI hub. He added that by mining Bitcoin directly and storing it in a national wallet, Pakistan could pivot from selling electricity domestically in rupees to earning stable US dollar revenues.