News View Non-AMP

IMF Reveals Huge Flaws in Pakistan’s Bitcoin Mining Plan Amid Power Crisis

Published by
Qadir AK and Zafar Naik and Zameer Attar

Pakistan wants to mine Bitcoin with 2,000 megawatts of power it barely has. The announcement, part of a broader strategy to attract crypto and AI firms, has triggered an immediate backlash from the International Monetary Fund (IMF) and for good reason.

As the country wrestles with severe energy shortages and ongoing bailout talks, the IMF is demanding urgent answers. According to local news portal Samaa, officials are now facing “stiff questions” about how legal – or even logical – this mining push really is.

“There is a fear of further tough talks from the IMF on this initiative,” said one government official involved in the negotiations.

Here’s what you should know.

Pakistan’s Crypto Play Falls Flat

The plan, unveiled alongside the debut of Pakistan’s first Bitcoin reserve at the Bitcoin Vegas 2025 conference, was meant to signal a pivot toward digital finance. But the optics don’t match the infrastructure.

Pakistan’s power grid is notoriously unreliable, with high transmission losses and blackouts still common. Meanwhile, industrial electricity rates hover around $0.22 per kWh – nearly 10x what miners pay in Texas.

At that rate, mining one Bitcoin in Pakistan would cost a staggering $132,000, compared to the global average of around $40,000-$50,000.

Even with a proposed subsidized tariff of $0.09/kWh, “the model falls apart,” warns local engineer Sana Zakir. “These subsidies may not be sustainable. Pakistan’s agreements with the IMF explicitly discourage blanket energy subsidies.”

A Big Bitcoin Bluff!

To make matters worse, the IMF claims it wasn’t even consulted about the plan. The Fund has flagged legal ambiguities surrounding crypto in Pakistan, raising red flags over the PDAA – the newly formed Pakistan Digital Asset Authority set to oversee exchanges, DeFi platforms, and tokenization efforts.

This is a fundamental red flag.

All the Right Ideas, All the Wrong Execution

Pakistan does have potential. At least one can argue that it does. Cheap labor, untapped solar and hydro resources, and regional demand could have positioned it well – if the groundwork were there.

But right now, it’s not.

This was not a strategic move. It was a chaotic attempt to ride a wave without learning how to swim in the kiddy pool. Unless Pakistan overhauls its infrastructure, energy pricing, and regulatory clarity, it risks turning a high-profile initiative into a self-inflicted crisis. It surely wouldn’t be the first time. 

FAQs

Is cryptocurrency legal in Pakistan now?

Yes, Pakistan has officially legalized cryptocurrency, introducing regulations to support investors, traders, and businesses in the crypto space.

How many crypto users are there in Pakistan?

Pakistan has about 25 million active crypto users and sees an estimated $300 billion in annual transaction volume.

How much does it cost to mine one Bitcoin in Pakistan?

At current rates, mining one Bitcoin in Pakistan could cost up to $132,000 due to expensive electricity and poor grid infrastructure.

Qadir AK and Zafar Naik and Zameer Attar

Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

Recent Posts

Exclusive: How a 77-Year-Old Indian Brand is Betting Big on Bitcoin Despite Tough Taxes

It’s not every day you hear about a 77-year-old Indian business shifting gears to embrace…

June 22, 2025

XRP Price to Crash 25%? Experts Warn of a Possible $1.55 Test

The cryptocurrency market remains volatile, and XRP is showing signs of weakness despite recently climbing…

June 22, 2025

Pi Network Price May Never Hit $10

Pi Network has been making headlines in the crypto community, with growing speculation about a…

June 22, 2025

ZachXBT Accuses Garden Finance For Laundering  Bybit Hack Funds

Recent data from the Dune Analytics reveals that Garden Finance has experienced a remarkable growth…

June 21, 2025

Bitcoin Crash Coming Next Week? James Wynn’s $70M Short Position Says So

With Bitcoin hovering around $103,500, well-known crypto trader James Wynn has made a bold prediction:…

June 21, 2025

ETH Breakout Patterns Align With Kaanch Buying Frenzy—Top Altcoins Can’t Keep Up

The cryptocurrency market is in a frenzy, with Ethereum's technical charts indicating the possibility of…

June 21, 2025