Pakistan unveiled a bold strategy to tackle its 2,000 MW electricity surplus by directing it toward Bitcoin mining and AI data centers, under a phased approach led by the state-backed Pakistan Crypto Council (PCC) and energy ministry. However, the International Monetary Fund (IMF) pushed back, citing risks related to grid strain, legal ambiguity, and the lack of prior consultation with the funders.

While Pakistan proceeded with a three-month trial, tapping into marginal-cost power to monetize idle electricity, the IMF rejected any extension or subsidy beyond this short window. Officials warned that long-term subsidized rates for restricted sectors like crypto-mining could distort markets and exacerbate fiscal and energy-sector vulnerabilities, especially given the nation’s ongoing reliance on IMF.

🔍 Why Pakistan Pursues Energy Pivot

• Surplus Power Waste: The country often meets capacity payments for unused generation capacity. The government aims to convert this wasted energy into high-tech investment and job.

• Crypto Agenda: In parallel, Pakistan launched the Pakistan Digital Asset Authority (PDAA) and announced a sovereign Bitcoin reserve, signaling its broader embrace of blockchain and digital asset.

  
  

⚠️ IMF’s Hesitations & Conditions

1. Grid Stability Risks: Power experts highlight that allocating significant energy to crypto-mining may worsen supply reliability—Pakistan already suffers frequent load.

2. Unsound Economic Incentives: The IMF flagged subsidized rates for…