IMF 'raises' objections to Pakistan’s 2,000mw allocation for crypto mining

ISLAMABAD: The International Monetary Fund (IMF) has raised concerns over Pakistan’s plan to allocate 2,000 megawatts (MW) of electricity for cryptocurrency mining, ARY News reported citing sources.

According to sources, the IMF demanded details on the pricing of cryptocurrency mining power supply.

During ongoing budget negotiations for the fiscal year 2025-26, the IMF instructed Pakistan to avoid offering subsidized rates for the electricity allocated to crypto mining and artificial intelligence (AI) data centers, emphasizing fiscal discipline, sources added.

Pakistan’s government is making strenuous efforts to secure relief measures in the budget, but the IMF has objected to most of these proposals, including tax exemptions and leniencies, according to sources.

The lender is pressing Pakistan to meet pre-agreed economic targets, maintain expenditure limits, and make tough budgetary decisions to ensure fiscal stability.

Additionally, the IMF has demanded an increase in excise duties on non-essential and luxury items to boost revenue, further intensifying pressure on the government as it navigates these challenging negotiations to secure continued support under the $7 billion Extended Fund Facility.

Also read: Pakistan announces first govt-backed strategic Bitcoin reserve

It is worth mentioning here that the government of Pakistan allocated two thousand Megawatts of electricity for Bitcoin Mining and Artificial Intelligence Data Centers.

According to Finance Division, the ambitious initiative is part of a broader strategy to monetize surplus electricity, create high-tech jobs, attract billions of dollars in Foreign Direct Investment, and generate billions of dollars for the government.

In a statement, Finance Minister Senator Muhammad Aurangzeb said the strategic allocation marks a pivotal moment in Pakistan’s digital transformation journey, unlocking economic potential by turning excess energy into innovation, investment, and international revenue.

Highlighting the transformative nature of initiative, CEO of the Pakistan Crypto Council Bilal Bin Saqib said that with proper regulation, transparency, and international collaboration, Pakistan can become a global crypto and AI powerhouse.

He said this energy-backed digital transformation not only unlocks high-value investment, but enables the government to generate foreign exchange in US Dollar through Bitcoin mining.

Bilal Bin Saqib said Pakistan can accumulate Bitcoin directly into a national wallet, marking a monumental shift from selling power in Pakistani Rupees to leveraging digital assets for economic stability