The announcement, made by Finance Minister Muhammad Aurangzeb and Pakistan Crypto Council CEO Bilal Bin Saqib, was unveiled at the Bitcoin 2025 conference in Las Vegas. The plan includes establishing a national Bitcoin reserve and dedicating substantial energy resources to digital infrastructure projects. However, the IMF was not consulted prior to this declaration, raising concerns about the initiative's legality and its potential impact on Pakistan's fragile power grid and fiscal stability.
The IMF, currently engaged in virtual discussions with Pakistani authorities over an extended financial support programme, has expressed apprehension over the lack of transparency surrounding the energy allocation. Officials within the Finance Ministry have acknowledged that the IMF was not briefed on the plan, prompting the Fund to question the legal framework governing cryptocurrencies in Pakistan and the rationale behind diverting significant energy resources to unregulated sectors.
Pakistan's energy sector has been grappling with chronic issues, including frequent power outages, outdated infrastructure, and rising electricity tariffs. The average household cost of electricity has surged to $0.23 per kilowatt-hour, and technical inefficiencies result in approximately 16% of electricity being lost during transmission. Amid these challenges, the decision to allocate 2,000 MW to Bitcoin mining and AI data centres has sparked debate over the government's priorities and the potential strain on the national grid.
The PCC, established in March 2025 under the Ministry of Finance, aims to develop regulations and promote blockchain technology and digital assets within Pakistan. The council is led by Finance Minister Aurangzeb, with Bilal Bin Saqib serving as CEO and Changpeng Zhao, co-founder of Binance, appointed as a strategic adviser. The government's broader strategy includes attracting foreign investment, creating high-tech employment opportunities, and positioning Pakistan as a global hub for digital innovation.
Despite these ambitions, the IMF's concerns highlight the tension between pursuing technological advancement and maintaining economic stability. The Fund has previously cautioned against the risks associated with government involvement in cryptocurrencies, particularly in countries receiving financial assistance. The lack of a formal regulatory framework for digital assets in Pakistan further complicates the situation, as the legal status of cryptocurrencies remains undefined.