Amid crippling energy crisis, Pakistan’s crypto mining ambitions spark global concern
IMF seeks clarity on legality, power allocation, and transparency
Unilateral announcement complicates already delicate financial negotiations
At a time when Pakistan is battling one of its worst energy crises and navigating precarious economic terrain, the government’s sudden move to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers has set off alarm bells—both domestically and internationally.
The International Monetary Fund (IMF), already in the midst of critical negotiations with Pakistan over an extended financial support program, has reportedly raised strong objections to the plan, citing concerns over resource misallocation, lack of legal clarity, and potential financial repercussions.
According to local media reports, the IMF was not consulted prior to the government’s announcement—a move that, insiders say, has only worsened tensions between the Fund and Pakistan’s economic team. “This has added an unnecessary layer of complexity to an already fragile dialogue,” said a senior official involved in the talks.
A Risky Gamble?
The proposal aims to attract global blockchain companies, autonomous miners, and AI firms to Pakistan—a country that has, until now, maintained an ambiguous legal stance on cryptocurrencies. While innovation in digital technology is essential, experts argue that prioritizing energy-intensive crypto mining in a nation plagued by chronic power outages reflects a severe misjudgment of national priorities.
Energy analysts warn that diverting such a massive volume of electricity—equivalent to the power needs of a small city—toward speculative digital ventures could disrupt grid stability, inflate tariffs, and deepen public discontent.
Moreover, the lack of transparency surrounding the decision-making process has raised eyebrows. Who will manage these operations? What regulatory safeguards are in place? Who benefits financially? These are just some of the unanswered questions that the IMF and civil society are now raising.
The Bigger Picture
Pakistan's economic team, already under pressure to meet IMF conditions regarding fiscal discipline, subsidy reforms, and revenue generation, is now caught in a difficult balancing act. The crypto mining plan, while potentially profitable in the long run, risks undermining the trust and cooperation Pakistan seeks from its international partners.
In a country where schools, hospitals, and basic industries suffer from power shortages on a daily basis, allocating scarce resources to an industry as volatile and unregulated as cryptocurrency may prove to be a policy misstep of considerable proportions.
As the government faces growing scrutiny, the coming days will likely determine whether this plan is re-evaluated—or pushed forward despite global concerns.
