IMF Rejects Pakistan’s $1.275T Bitcoin Mining Plan Over Power Subsidies

Pakistan’s Bitcoin reserve plans hit a roadblock. The International Monetary Fund (IMF) has rejected the country’s proposal to offer...

Written by: Arslan Butt • Thursday, July 3, 2025 • 2 min read

• Last updated: Thursday, July 3, 2025

Quick overview

Pakistan's proposal to offer subsidized electricity for cryptocurrency mining has been rejected by the IMF due to concerns over legal ambiguities and the impact on the power distribution system.
The plan aimed to allocate 2,000 MW of surplus electricity to attract foreign investment and enhance Pakistan's position in the global tech landscape.
Despite the setback, Pakistan is moving forward with its digital transformation, having launched the Pakistan Digital Assets Authority to regulate crypto activities.
The IMF's rejection highlights the need for better consultation with international lenders regarding energy policies and financial strategies.

Pakistan’s Bitcoin reserve plans hit a roadblock. The International Monetary Fund (IMF) has rejected the country’s proposal to offer subsidized electricity to cryptocurrency mining operations. Power Secretary Dr. Fakhray Alam Irfan confirmed the IMF’s stance, saying the institution opposes all forms of targeted subsidies, including those for crypto and AI data centers.

The proposal would have allocated 2,000 MW of surplus electricity during winter months for Bitcoin mining and data infrastructure. This was seen as a way to attract foreign investment, reduce unused capacity and position Pakistan in the global tech landscape.

But the IMF raised several concerns:

Legal ambiguities around crypto operations.
Impact on Pakistan’s already fragile power distribution.
No consultation with international lenders before announcement.

The plan is now under review by the World Bank and other stakeholders.

Pakistan’s Digital Journey

Despite the setback, Pakistan is committed to its digital transformation. Earlier in 2025, the government launched the Pakistan Digital Assets Authority (PDAA) to regulate crypto and ensure compliance. The country’s Bitcoin Reserve initiative, announced by the Pakistan Crypto Council (PCC), aims to:

Create jobs in AI and blockchain sectors.
Utilize surplus electricity.
Position Pakistan as a data corridor between Asia, Europe and Middle East.

Updates So Far:

PDAA framework released in June 2025.
500,000+ downloads of the “Apna Meter Apni Reading” app for bill accuracy.
Plans to extend smart metering to K-Electric customers.

Global Pressure Mounts

IMF’s rejection comes after it warned about imbalances in Pakistan’s energy policy last month. It had flagged the government’s failure to consult with global financial institutions before rolling out its crypto mining plan.

Also, IMF has raised concerns over the Rs 1.275 trillion circular debt settlement with domestic banks. Some senators alleged coercion in the process, but Dr. Irfan denied any forceful measures or new taxes.

Meanwhile, PCC head Bilal Bin Saqib is still pushing for crypto integration, saying digital assets are strategically important and citing US as an example for Pakistan’s Bitcoin reserve model.Not over yet.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.