Pakistan sent shockwaves through the global cryptocurrency community with a bold announcement about establishing a Strategic Bitcoin Reserve, only to descend into political chaos as senior government officials swiftly contradicted the entire initiative.
What began as an ambitious declaration at the Bitcoin Vegas 2025 Conference quickly unraveled into a embarrassing display of governmental confusion that left investors, the International Monetary Fund, and citizens questioning Pakistan’s crypto credibility.
At the Las Vegas conference, Bilal Bin Saqib, Special Assistant to the Prime Minister on Crypto and Blockchain, made headlines by unveiling Pakistan’s entry into decentralized finance.
However, the celebration was short-lived. Pakistani authorities at home quickly moved to disavow the announcement, creating a diplomatic and policy crisis. On May 30, Finance Secretary Imdadullah Bosal reportedly clarified before the National Assembly’s Standing Committee on Finance and Revenue that no official policy change had occurred and that cryptocurrency remains illegal under current regulations.
IMF Sees Red Flags
The IMF has expressed serious concerns about Pakistan’s unilateral crypto initiatives, particularly the proposed allocation of 2,000 megawatts to bitcoin mining operations.
The IMF, which was notably not consulted about these plans, has demanded urgent clarifications regarding the legality of bitcoin in Pakistan and questioned the wisdom of diverting vital energy resources to poorly regulated crypto projects.
Pakistan’s timing could not be worse, as the country is currently in the middle of budget renegotiations with the IMF under an Extended Fund Facility program. The IMF requires that any significant financial policy changes be coordinated within this framework, making Pakistan’s solo crypto announcement a potential violation of their agreement. The institution’s response mirrors its previous stance with El Salvador, where it banned bitcoin accumulation as part of financial assistance conditions.
The consequences of defying IMF guidance could be severe for Pakistan’s already fragile economy. Refusing to comply could result in suspended financial aid or worsened tensions in debt markets, jeopardizing funds intended to support the local economy.
In the long term, this could further isolate Pakistan in an already challenging economic context, transforming bitcoin from a symbol of innovation into a warning sign for international creditors.
Energy Crisis And Contradictions
Pakistan’s bitcoin mining ambitions face a harsh reality check when examined against the country’s devastating energy crisis. Since 2021, electricity prices have skyrocketed by 155%, reaching an average cost of $0.23 per kilowatt-hour and forcing industries and households to seek alternative solar solutions.
The country’s outdated infrastructure suffers from 16% line losses, frequent outages, and a system that subsidizes inactive power plants while imposing tariff increases to satisfy IMF conditions.
In this explosive energy context, allocating 2,000 megawatts to bitcoin mining appears not just impractical but potentially inflammatory. Pakistan already struggles to provide stable electricity to its 220 million citizens, making the decision to prioritize crypto mining over basic energy needs politically dangerous.
The announcement raises both economic and social concerns, as diverting energy to bitcoin data centers risked worsening energy poverty and fueling popular anger.