Pakistan’s bold leap into the world of Bitcoin mining has hit a serious speed bump and that bump has three letters: IMF.
Just a few months ago, Pakistan seemed poised to enter the crypto world with confidence. The country had a surplus of electricity during the winter months and the government proposed a creative solution. According to Ainvest, the government of Pakistan wanted to sell the country’s unused energy at discounted rates to industries that required it, such as artificial intelligence centers, copper smelters, and Bitcoin mining. The goal was to use idle power, increase industrial demand, and possibly, build a national Bitcoin reserve.
Sounds smart, right? The International Monetary Fund didn’t think so.
According to Pakistan Today and other local sources, the IMF firmly rejected the proposal put forth by the Pakistani government. The organization warned that giving discounted electricity to specific industries could harm the already fragile energy market. Secretary of Power Dr. Fakhray Alam Irfan told a Senate energy committee that the IMF rejected the proposal three separate times. Each time, the IMF responded that such targeted pricing strategies resembled tax subsidies and might cause economic imbalances.
The IMF’s decision was a tough setback for a country eager to establish itself as a leader in digital innovation. The original proposal, presented in late 2024, offered electricity at 22-23 rupees per kilowatt hour. That rate, roughly eight cents in US dollars, was very attractive to data centers and Bitcoin miners. Still, the IMF raised concerns that this plan could disrupt energy prices and slow down broader power sector reforms.
Still, all is not lost. Pakistan’s proposal hasn’t been scrapped. It has just been sent back for some serious edits. Dr. Irfan says the government is now working with the World Bank and other international partners to tweak the plan into something more “fund-approved.”
Meanwhile, in a much more optimistic May announcement, Pakistan’s Ministry of Finance revealed the allocation of 2,000 megawatts of excess power for Bitcoin mining and AI operations. According to TheNews.pk, the plan, backed by the Pakistan Crypto Council, was part of a broader digital transformation effort. Finance Minister Muhammad Aurangzeb even rolled out tax incentives for AI centers and duty exemptions on crypto mining equipment to sweeten the deal for investors.
Adding even more buzz, the Crypto Council’s founder, Bilal Bin Saqib, revealed at the Bitcoin 2025 conference that Pakistan hopes to establish a national Bitcoin reserve. The goal was not just to HODL, but to grow it using yield from decentralized finance (DeFi) protocols. Saqib said the idea was inspired by talks with big-name crypto players, including Michael Saylor of Strategy.
But for now, that vision remains a dream deferred.
The IMF’s rejection of Pakistan’s plan underscores the tension between innovation and economic stability. Pakistan may want to plug into the crypto economy, but with global lenders watching closely, it’ll need to do so on terms that won’t short-circuit its power sector or its financial credibility.
Still, if the energy is there and the vision holds, don’t count Pakistan out just yet. The Bitcoin reserve might be on pause, but the conversation is just getting started.
