IMF rejects Pakistan’s Bitcoin mining plan, citing energy strain and legal issues, casting doubt on its Strategic Bitcoin Reserve.
The IMF has rejected a proposal for subsidized electricity tariffs for Bitcoin mining, a setback for Pakistan’s Bitcoin reserve plans. According to Secretary of Power Dr. Fakhray Alam Irfan, the IMF is resolutely opposed to targeted subsidies, even though Pakistan has surplus electricity during winter.
Pakistan’s Bitcoin Mining Plans Are Subject to Criticism by the International Monetary Fund (IMF)
Local reports indicate that Pakistan’s Bitcoin mining initiative has encountered an obstruction, as the International Monetary Fund (IMF) has expressed reservations regarding the nation’s proposal to provide cryptocurrency miners with discounted electricity. Dr. Fakhray Alam Irfan, Secretary of Power, reiterated the IMF’s steadfast opposition to targeted subsidies for crypto mining. The World Bank and other lenders are currently reviewing the proposal.
Pakistan has allocated 2,000 megawatts of electricity from the state infrastructure to cryptocurrency mining and artificial intelligence data centers as part of its Bitcoin reserve plans. The initiative, which is spearheaded by the Pakistan Crypto Council (PCC), a government-backed organization, is designed to stimulate the sector’s development by increasing tech employment, attracting foreign investment, and utilizing excess electricity. The authorities declared,
Pakistan is uniquely positioned — both geographically and economically — to become a global hub for data centers. As a digital bridge between Asia, Europe, and the Middle East, Pakistan offers the most strategic location in the world for data flow and digital infrastructure.
It was previously reported that the IMF may intensify its scrutiny of Pakistan’s crypto initiatives, particularly its Bitcoin Reserve. Bilal Bin Saqib, the Head of the Pakistan Crypto Council, has been vocal about the country’s cryptocurrency initiatives and the underlying motivations of the United States.
Today is a very historic day. Today, I announce the Pakistani government is setting up its own government-led Bitcoin Strategic Reserve, and we want to thank the United States of America again because we were inspired by them.
Is this a setback for Pakistan’s Bitcoin Reserve Plans?
Pakistan has been taking steps to create a crypto-friendly environment, particularly in response to the pro-crypto posture of US President Trump. Pakistan inaugurated the Pakistan Digital Assets Authority (PDAA) earlier this year to guarantee compliance with crypto regulatory requirements.
In June 2025, the Pakistani government issued crypto regulations to facilitate the establishment of a national bitcoin reserve, amidst increasing rumors of IMF scrutiny.
The IMF expressed apprehensions about Pakistan’s intention to allocate electricity for Bitcoin mining last month, citing concerns regarding the potential strain on the power grid and legal implications. The IMF also issued a cautionary note regarding the possible impact on resource distribution and the consequent effects on power tariffs. Furthermore, the authority observed that Pakistan had not consulted with them before unveiling the cryptocurrency mining initiative.
According to the report, Senators expressed apprehension regarding the recent Rs 1.275 trillion circular debt resolution with banks, with one lawmaker making allegations of coercion.
Nevertheless, Dr. Fakhray Alam Irfan refuted the allegations, asserting that no new levies were implemented. He emphasized the success of the Apna Meter Apni Reading app, which more than 500,000 consumers have downloaded to reduce overbilling. K-Electric is anticipated to receive the service in the near future.
