BCGAME - Free 5BTC Daily Bonus!- Bitcoin Mining Puts Pressure on Pakistan’s Energy Crisis
- IMF challenges subsidies and regulatory failures in cryptocurrencies
- Weak infrastructure makes Bitcoin mining unfeasible in the country
The Pakistani government’s recent announcement to allocate 2.000 megawatts of power for Bitcoin mining has drawn sharp criticism from the International Monetary Fund (IMF), which sees the move as financially and technically unfeasible. The country is facing serious energy difficulties, with frequent blackouts and high industrial tariffs, while at the same time it is in delicate negotiations to obtain financial support from the IMF.
BREAKING: 🇵🇰IMF raises concerns over Pakistan's decision to allocate 2,000 megawatts of electricity for # Bitcoin mining and AI data centers.
IMF asks for clarification on the legality of crypto mining and power allocation amid Pakistan's energy crisis and fiscal pressures. pic.twitter.com/zzISEXPgwq
— Crypto India (@CryptooIndia) May 31, 2025
Even as Pakistan seeks to position itself as a hub for digital assets and artificial intelligence, the proposal is seen as an operational risk. The average industrial electricity tariff is around $0,22 per kWh, making the estimated cost of mining each Bitcoin over $130, well above the global average. The proposed subsidy to bring this tariff down to $0,09 per kWh has also been criticized. “These subsidies may not be sustainable. Pakistan’s agreements with the IMF explicitly discourage widespread energy subsidies,” warned energy engineer Sana Zakir.
The plan was unveiled at the Bitcoin Vegas 2025 conference as part of the inauguration of the first national Bitcoin reserve. However, the implementation was seen as hasty, particularly due to the lack of prior consultation with the IMF and the legal loopholes in the country’s cryptocurrency regulation. The creation of the Pakistan Digital Assets Authority (PDAA), tasked with overseeing exchanges and DeFi projects, has also raised concerns about its institutional and operational legitimacy.
Pakistan has resources such as affordable labor and renewable energy potential, but it still lacks a solid infrastructure base and regulatory clarity to support projects of this magnitude. Attempting to enter the cryptocurrency market without addressing these internal weaknesses risks undermining the country’s credibility with international financial institutions.
