Pakistan’s Ambitious Bitcoin Mining and Digital Asset Strategy Amid IMF Scrutiny

Main Points:

• Pakistan has allocated 2,000 megawatts (MW) of electricity to power Bitcoin mining and artificial intelligence (AI) data centers as part of a broader digital transformation strategy.
• The International Monetary Fund (IMF) has raised serious concerns about the legality of cryptocurrency mining in Pakistan and the impact of diverting scarce energy resources amid chronic electricity shortages.
• The government’s push includes establishing the Pakistan Digital Asset Authority (PDAA) to regulate digital asset exchanges, wallets, stablecoins, and decentralized finance (DeFi) platforms, aiming for compliance with international standards.
• Pakistan unveiled a government-led “Strategic Bitcoin Reserve,” announcing that it will hold Bitcoin in a national wallet without plans to sell, signaling a long-term commitment to digital currency.
• Energy experts highlight Pakistan’s existing electricity surplus yet systemic transmission losses and high tariffs; critics warn that dedicating power to mining could strain both the grid and public finances.
• Proponents argue that reallocating underutilized coal and other plants for mining and AI centers could monetize surplus capacity, attract foreign investment, and generate high-tech jobs.
• The move follows inspiration from El Salvador’s Bitcoin adoption and the United States, where some states incentivize crypto mining, although Pakistan lacks a formal regulatory framework for digital assets.
• IMF negotiations hinge on budgetary discipline; the fund has requested urgent clarification from Pakistan’s Finance Ministry to explain the allocation’s legality, electricity tariff implications, and how the plan fits within the Extended Fund Facility program.
• Local stakeholders—including government officials, cryptocurrency entrepreneurs, and energy analysts—express mixed views: optimism about digital innovation versus apprehension regarding energy security and fiscal risks.
• Pakistan’s young population, boasting over 40 million cryptocurrency wallets and a median age of 23, presents a potential market for blockchain-driven economic growth, yet regulatory uncertainty persists.

Background: Pakistan’s Energy Landscape and Digital Aspirations

Pakistan’s energy sector has long grappled with a complex mix of surplus generation capacity in some regions and crippling shortages elsewhere. According to Reuters, the government cited high electricity tariffs and rapidly growing solar adoption as factors contributing to surplus generation, even as transmission losses of up to 16 percent persist across aging infrastructure. While certain coal-fired plants operate below capacity, over 90 million Pakistanis still face frequent blackouts.

In May 2025, Pakistan’s Finance Ministry announced a bold policy decision: allocate 2,000 MW of electricity from underutilized power plants toward powering Bitcoin mining operations and AI data centers. This announcement dovetails with the country’s broader ambition to embrace digital finance, monetize surplus energy, and create high-tech employment opportunities. The government-backed Pakistan Crypto Council (PCC) spearheads the initiative, envisioning a three-phase rollout that begins with the 2,000 MW allocation.

Simultaneously, Pakistan’s rapidly growing tech-savvy youth—holding more than 40 million cryptocurrency wallets with an average age of 23—has spurred policymakers to view blockchain and digital assets as engines of economic growth and financial inclusion. Bilal bin Saqib, the crypto advisor to Prime Minister Shehbaz Sharif, emphasized at the Bitcoin 2025 Vegas Conference that Pakistan is “now valued for its future, not its past,” highlighting the young population’s online and on-chain activity.

Pakistan’s Digital Asset Strategy and the Establishment of PDAA

In conjunction with the power allocation, Pakistan unveiled plans to form the Pakistan Digital Asset Authority (PDAA), a regulatory body tasked with overseeing all aspects of the digital asset ecosystem—including cryptocurrency exchanges, custodial and non-custodial wallets, stablecoins, and DeFi platforms. The PDAA’s mandate includes tokenizing national assets and liabilities, regulating initial coin offerings (ICOs), and ensuring compliance with the Financial Action Task Force’s (FATF) global anti–money laundering and counter–terrorism financing standards.

On May 21, 2025, the Finance Ministry approved the PDAA, signaling a shift toward formalizing Pakistan’s digital asset policy framework for the first time. By establishing a single regulatory authority, Pakistan aims to consolidate oversight, reduce jurisdictional ambiguity, and attract responsible foreign investment into its burgeoning digital finance ecosystem. Government officials have posited that the PDAA will function similarly to frameworks adopted in Singapore and the United Arab Emirates, where governmental digital asset authorities issue licenses, impose capital requirements, and monitor compliance.

Critically, however, Pakistan has not yet enacted comprehensive legislation defining the legal status of cryptocurrencies. While the PDAA’s formation provides a structural foundation, the specifics of taxation, licensing fees, minimum capital thresholds for service providers, and consumer protection standards remain under negotiation within the Finance Ministry and relevant parliamentary committees. In the absence of an explicit legal framework, some observers question whether Pakistan’s regulatory approach is sufficiently robust to mitigate fraud, market manipulation, and systemic financial risks.

Pakistan’s Strategic Bitcoin Reserve Announcement

At the Bitcoin 2025 Vegas Conference on May 28, 2025, Bilal bin Saqib announced that Pakistan would create a government-held “Strategic Bitcoin Reserve,” marking the first time a national government has directly purchased Bitcoin to hold indefinitely. According to Saqib, the government plans to acquire Bitcoin on the open market and store it in a sovereign wallet, with no intention to sell, signaling a long-term commitment to digital currency as a national asset.

This strategy draws inspiration from El Salvador’s 2021 Bitcoin Law, which designated Bitcoin as legal tender alongside the U.S. dollar. However, unlike El Salvador—where Bitcoin adoption has faced both enthusiastic support and widespread criticism—Pakistan’s foray into “sovereign Bitcoin” rests within a complex interplay of fiscal austerity, energy constraints, and geopolitical pressures from the IMF. In El Salvador, the government leveraged geothermal power from the country’s volcanoes to run eco-friendly mining operations; Pakistan, by contrast, aims to repurpose underutilized coal plants and potentially harness solar energy to offset carbon emissions for its mining operations.

While exact figures regarding Pakistan’s planned Bitcoin purchase remain undisclosed, analysts estimate that a national reserve could involve acquiring Bitcoin worth between $50 million to $100 million in the initial phase. The government asserts that holding Bitcoin enhances its foreign exchange reserves, diversifies asset holdings, and signals openness to digital innovation. Nonetheless, detractors caution that Bitcoin’s extreme price volatility could expose state finances to significant risk, especially given Pakistan’s fragile fiscal position and ongoing negotiations with the IMF for a $2.4 billion Extended Fund Facility loan.

IMF Concerns: Legality, Energy Allocation, and Budgetary Implications

Almost immediately after Pakistan’s announcement, the IMF delivered a pointed critique. Sources from local media reported that IMF representatives were not briefed before the May 25 policy announcement, prompting urgent requests for clarification around the legal framework governing cryptocurrency mining, electricity tariff implications, and alignment with Pakistan’s Extended Fund Facility program conditions .

The IMF’s primary concerns include:

1. Legal Ambiguity: Pakistan currently lacks a formal cryptocurrency legal framework. Without a clearly defined regulatory environment, mining operations could contravene existing financial regulations or expose the banking system to illicit finance risks.
2. Energy Security Risks: Allocating 2,000 MW—approximately 10 percent of Pakistan’s peak generation capacity—toward power-intensive Bitcoin mining could exacerbate electricity shortages for industrial and residential consumers. Critics suggest that, despite surplus generation claims, Pakistan’s grid stability remains precarious, especially during summer peak demand.
3. Fiscal Strain: The IMF views any policy that potentially increases subsidy burdens—if mining operations receive subsidized tariffs or if inefficiencies lead to revenue shortfalls—as incompatible with Pakistan’s fiscal consolidation commitments. During budget negotiations, IMF negotiators accentuated that any unplanned spending or subsidized power allocations must be reconciled within the Extended Fund Facility program’s fiscal targets.

According to a senior IMF official, “There is a fear of further tough talks from the IMF on this initiative. The economic team is already facing stiff questions, and this move has only added to the complexities of the ongoing talks”. The IMF delegation has scheduled a confidential meeting with Pakistan’s Finance Ministry to dissect the proposal, scrutinize energy tariff structures for miners, and examine how the plan aligns with Pakistan’s broader budgetary outlook.

Energy Context: Surplus, Shortages, and Transmission Losses

To understand the debate, one must unpack Pakistan’s energy conundrum. On paper, the country generates more electricity than it consumes—largely due to the rapid expansion of high-capacity generation facilities, including coal, hydro, and nuclear plants. Reuters reports that Pakistan’s surplus generation peaked at roughly 3,000 MW in the dry season of 2024, exacerbated by declining industrial demand amid an economic slowdown. However, over 16 percent of generated electricity is lost during transmission due to outdated grid infrastructure and power theft.

Despite these statistics, rolling blackouts remain commonplace in urban centers like Karachi and Lahore, particularly during summer months when temperatures frequently exceed 40 °C. The gap between generation and reliable delivery underscores a deeper structural issue: Pakistan’s electricity is inadequately distributed, and power plants often run at significantly lower capacity factors than their rated potential.

By earmarking 2,000 MW for Bitcoin mining and AI data centers, Pakistan’s policymakers argue that they can monetize idle capacity—especially from coal plants that operate at less than 50 percent utilization—and generate foreign exchange through potential crypto exports. The Finance Division has stated that repurposing underutilized coal power plants would “create high-tech jobs, attract billions of dollars in foreign direct investment, and generate billions of dollars for government coffers”.

However, energy analysts caution that feeding mining operations could inadvertently push up costs for average consumers. If miners receive preferential tariffs—subsidized below cost-recovery levels—the state could subsidize mining at the expense of grid maintenance and tariff reforms. Conversely, if miners pay full-cost tariffs, electricity expenditures could render mining unprofitable, forcing miners to either shut down or use diesel generators, thereby worsening air pollution and undermining the government’s environmental commitments.

Comparative Analysis: El Salvador, United States, and Other Jurisdictions

Pakistan’s move parallels El Salvador’s groundbreaking Bitcoin Law of 2021, which established Bitcoin as legal tender and deployed geothermal energy from volcanoes to power mining. While El Salvador’s approach centered on integrating Bitcoin into everyday transactions—enabling tax payments, remittance channels, and citizen wallet distributions—Pakistan’s strategy appears more focused on industrial-scale mining and infrastructure incentives. In El Salvador, the state-backed “Bitcoin City” project aims to use geothermal energy to achieve carbon-neutral mining; Pakistan, lacking abundant geothermal resources, must rely on a combination of coal and solar to achieve any semblance of eco-friendly operations.

In the United States, several states—particularly Texas and Kentucky—offer low-cost power to crypto mining firms, citing economic development and grid stabilization benefits. Texas, for example, provides real-time power pricing and surplus natural gas to incentivize miners to act as “demand response” assets, absorbing excess electricity during off-peak periods. Kentucky’s regulatory framework classifies miners as “data centers,” thereby allowing them to secure subsidized industrial rates. Pakistan’s policymakers reference these examples to justify their power allocation, arguing that with proper grid management, Bitcoin mining can act as a shock absorber for excess generation during off-peak hours.

Nevertheless, critics highlight that Pakistan’s grid lacks the smart-metering infrastructure and demand response mechanisms present in Western jurisdictions. Without real-time pricing and automated load-shedding protocols, diverting large blocks of power to mining could precipitate voltage fluctuations, frequency instabilities, and distribution bottlenecks, especially in southern provinces like Sindh and Balochistan, where transmission congestion is already acute.

Stakeholder Perspectives: Government, Miners, and Civil Society

Government Officials and Proponents:

• Economic Diversification: The Finance Ministry and PCC emphasize that mining and AI centers will diversify Pakistan’s economy, currently reliant on textiles and remittances, by developing a digital services export sector. They envision Pakistan becoming a “global hub for crypto-mining and blockchain innovation,” leveraging low labor costs and existing power generation.
• Job Creation and FDI: Estimates project the creation of up to 50,000 direct jobs in mining operations, data center management, and ancillary services, as well as the attraction of $2 billion to $3 billion in foreign direct investment over the next three years. Former military-owned power plants, which currently operate at half capacity, could find new revenue streams by selling electricity to mining consortia.
• Digital Innovation: By establishing the PDAA and a national Bitcoin reserve, Pakistan aims to signal to global tech investors that it is open for business, intending to rival Dubai and Singapore as regional digital finance hubs.

Independent Cryptocurrency Entrepreneurs:

• Optimism: Some local entrepreneurs argue that Pakistan’s 23 million tech-savvy youth represent a massive untapped market. They foresee startups building blockchain-based identity solutions, remittance platforms, and DeFi lending protocols. Many are already experimenting with solar-powered “micro-mines” in rural Punjab to offset energy costs and reduce carbon footprints.
• Regulatory Uncertainty: However, entrepreneurs voice concern that without clear tax guidelines, licensing modalities, and consumer protection rules, they risk operating in a legal gray area. A sudden policy reversal—if IMF pressures force the government to rescind the power allocation—could leave investors stranded and equipment stranded in customs.

Civil Society and Energy Experts:

• Energy Equity Concerns: Civil society groups warn that dedicating large swathes of electricity to corporate miners and AI centers could exacerbate socioeconomic disparities. Low-income households experiencing frequent outages may perceive mining operations as unjust preferential treatment for affluent tech companies. Rural communities relying on agricultural wells and cold storage face the brunt of load-shedding during harvest seasons, raising concerns that mining could worsen food security risks.
• Environmental Impact: While some mining consortia plan to integrate solar and wind power, many analysts caution that coal-fired plants—responsible for over 50 percent of generation—will remain the primary power source. This reliance could undermine Pakistan’s commitments under the Paris Agreement to reduce greenhouse gas emissions by 30 percent by 2030.

Recent Developments and Ongoing Negotiations

As of early June 2025, IMF negotiators and Pakistan’s Finance Ministry continue virtual discussions focusing on the power allocation and its broader fiscal implications. According to local reporting, the IMF delegation has requested detailed modeling on projected electricity demand from mining, anticipated tariff structures, and contingency plans to safeguard residential power supply.

Additionally, the IMF is reportedly concerned about the lack of prior consultation: Pakistan’s government did not inform the IMF about the PDAA’s formation or the Bitcoin reserve announcement before public disclosure. The IMF’s core requirement under the Extended Fund Facility program is policy consistency and transparency; unilateral rollouts could jeopardize future disbursements if deemed inconsistent with agreed-upon economic reforms.

On May 31, 2025, Pakistani newspapers reported that a confidential IMF–Pakistan meeting would take place to dissect the plan’s legal grounding. Officials from Pakistan’s Securities and Exchange Commission, Ministry of Law, and Energy Department are slated to present unified briefs to clarify how digital asset regulation aligns with existing statutes—such as the Anti–Money Laundering Act of 2010—and what amendments might be necessary to legitimize government-led mining programs.

Simultaneously, grassroots cryptocurrency communities have begun mobilizing petitions urging the government to introduce tax incentives for miners who adopt renewable energy. Several consortia—comprising local blockchain startups and international investors—propose a “Green Hash Initiative” that would tie mining subsidies to verifiable carbon offset commitments. These discussions are nascent, and it remains uncertain whether the PDAA’s forthcoming regulations will include environmental criteria or sustainability reporting requirements.

Potential Economic Impact and Risks

Proponents assert that an efficient mining sector could:

1. Boost Foreign Exchange Reserves: If Pakistan’s national Bitcoin reserve appreciates over time, it could serve as a non-traditional asset buffer against rupee depreciation. Bitcoin’s global liquidity potentially offers an alternative to conventional reserve assets.
2. Generate “Digital Export Revenues”: Exporting computational power, AI services, and blockchain-based solutions could diversify Pakistan’s export portfolio beyond textiles and remittances. Some analysts estimate that Pakistan could tap into a $10 billion–$15 billion global cryptocurrency mining market by 2028.
3. Stimulate High-Tech Employment: The establishment of data centers and mining farms could create thousands of jobs in engineering, software development, hardware maintenance, and cybersecurity, helping to mitigate brain drain and urban unemployment.

However, the risks are equally pronounced:

• Electricity Subsidy Burden: If the government subsidizes electricity for mining at preferential rates, it could widen the fiscal deficit, undermining efforts to reduce the budget shortfall from 5.9 percent of GDP in FY 2025 to below 5 percent by FY 2026, as per IMF targets.
• Currency Volatility Exposure: Bitcoin’s notorious price swings—ranging from $25,000 to $70,000 within the past year—could translate into significant paper losses on the national reserve, potentially eroding public trust.
• Regulatory Backlash and Policy Reversals: If global downturns or domestic energy crises intensify, the government might rescind mining incentives, leaving investors and miners vulnerable to stranded assets and unrecoverable capital expenditures.
• Grid Instability: Diverting large blocks of power to round-the-clock mining rigs could lead to unanticipated load-shedding episodes or frequency deviations that damage industrial equipment and household appliances, inciting public backlash.

Comparison to El Salvador and U.S. Practices: Lessons Learned

El Salvador’s 2021 Bitcoin Law garnered global attention when President Nayib Bukele mandated Bitcoin as legal tender. The country invested in geothermal-powered mining to reduce carbon footprints. However, El Salvador faced significant criticism when the Chivo Wallet rollout was plagued by technical glitches, wallets suffered phishing attacks, and less than 1 percent of daily transactions involved Bitcoin by December 2024. Retailers reported difficulties converting Bitcoin to U.S. dollars, and citizens harbored skepticism about price volatility and insufficient digital literacy.

Pakistan’s environment differs: it lacks consistent geothermal advantages, and its grid infrastructure is less resilient than El Salvador’s. While Pakistan could pair mining with renewable energy projects—especially solar farms in Balochistan and Sindh—the upfront capital requirements for grid upgrades and smart meters are substantial.

In the United States, Texas provides electricity price incentives to miners to absorb surplus power during off-peak hours, thereby stabilizing the grid and monetizing otherwise curtailed generation. However, Texas’s Electric Reliability Council (ERCOT) features extensive demand response programs, a deregulated market, and near-real-time pricing—capabilities absent in Pakistan’s market. If Pakistan attempts to replicate the ERCOT model without first reforming its wholesale market and establishing transparent grid cost allocation for miners, the initiative could collapse under unanticipated grid stress.

Regulatory Path Forward: PDAA’s Role and International Standards

The newly formed PDAA will be pivotal in reconciling Pakistan’s aspirations with international best practices. Its proposed regulatory framework includes the following pillars:

• Licensing and Compliance: Service providers (exchanges, custodial and non-custodial wallet providers) must obtain licenses subject to minimum capital requirements, cybersecurity protocols, and regular audits.
• AML/CFT Measures: The PDAA will mandate that all crypto service providers implement Know Your Customer (KYC) procedures, suspicious transaction reporting, and transaction monitoring systems aligned with FATF recommendations. Transactions exceeding predetermined thresholds must be reported to the Financial Monitoring Unit (FMU).
• Stablecoin and DeFi Oversight: Issuance of stablecoins pegged to fiat currencies will require obtaining approval from the State Bank of Pakistan (SBP), and DeFi platforms facilitating lending, borrowing, or decentralized exchanges must comply with prudential limits and smart contract audits.
• Consumer Protection and Market Integrity: The PDAA plans to establish a dedicated “Digital Asset Ombudsman” to adjudicate consumer complaints, mediate disputes, and enforce penalties for fraudulent activities. Market manipulation—such as wash trading or insider trading—would trigger fines and license suspensions.
• Environmental and Sustainability Criteria: Preliminary guidelines suggest that miners applying for subsidized tariffs must present verifiable renewable energy commitments or net-zero carbon offset plans. The PDAA intends to partner with Pakistan’s Climate Change Ministry to certify clean-energy certificates for eligible mining operations.

International stakeholders, including the World Bank and Asian Development Bank (ADB), have signaled conditional support for Pakistan’s digital asset framework, contingent on rigorous AML/CFT safeguards and environmental impact assessments. The World Bank has offered technical assistance to draft regulatory guidelines consistent with best practices observed in jurisdictional peers like Singapore and the United Kingdom’s Financial Conduct Authority (FCA).

Public Sentiment and Civil Society Response

Public sentiment within Pakistan is polarized. Urban youth and cryptocurrency enthusiasts celebrate the government’s bold vision for digital transformation, viewing Bitcoin mining as an entrepreneurial opportunity. Informal meetups in Karachi, Lahore, and Islamabad have attracted over 10,000 participants since March 2025, indicating robust grassroots enthusiasm .

Conversely, consumer rights groups and environmental NGOs have mobilized protests in Lahore and Peshawar, demanding transparency on how electricity will be allocated and priced. Petitioners argue that, given the recent 18 percent tariff increase approved in July 2024, it is inequitable to prioritize mining operations over households that struggle to pay monthly bills. Farmers in Punjab have threatened strikes if mining exacerbates load-shedding during the wheat harvesting season (May–June), which could compromise food security and inflate domestic wheat prices.

In “shadow markets” where diesel generators power households during blackouts, some low-income families resort to cost-prohibitive fuel alternatives, spending as much as 10 percent of their monthly income on diesel. Critics warn that further load-shedding—indirectly caused by mining demand—could push these families into deeper poverty.

Technological and Infrastructure Considerations

To actualize the power allocation, Pakistan’s Ministry of Energy has tasked state-owned enterprises (SOEs) like Pakistan Electric Power Company (PEPCO) and the National Transmission and Dispatch Company (NTDC) with drafting grid upgrade plans. Engineers must implement advanced Supervisory Control and Data Acquisition (SCADA) systems to enable real-time monitoring of frequency and voltage. The plan calls for building dedicated high-voltage transmission lines from coal-fired plants in Thar and Sahiwal to potential mining hubs in Punjab and Sindh, a project estimated at $500 million in capital expenditures.

Cryptocurrency mining consortia are reportedly negotiating with Chinese and Turkish investors to supply high-efficiency Application-Specific Integrated Circuit (ASIC) machines, capable of 100 TH/s (terahashes per second) while consuming less than 3 kW per unit. Some consortia plan to deploy liquid-cooled mining rigs to reduce noise pollution and improve energy efficiency. Early-stage proposals include co-locating solar farms adjacent to coal plants, feeding excess solar power into mining operations during peak sun hours and diverting coal power during overcast periods.

However, the success of this infrastructure rollout depends heavily on Pakistan’s capacity to attract concessional financing. Sources indicate that the ADB is preparing a $200 million loan package to support grid modernization and smart-meter deployment, but first requires Pakistan to resolve outstanding circular debt—estimated at $9 billion as of Q1 2025—before disbursing funds. The circular debt arises from the gap between tariff collections and generation costs, a chronic issue exacerbated by subsidized rates, line losses, and non-payment by state-owned distribution companies.

Looking Ahead: Scenarios and Projections

In the short term, Pakistan faces three possible scenarios:

1. Continued Negotiations and Conditional Approval: If Pakistan can demonstrate a credible plan to fund grid upgrades, ensure that miners pay cost-recovery tariffs, and establish a provisional cryptocurrency legal framework within the next 60 days, the IMF may grant conditional approval. Under this scenario, PDAA’s regulations would roll out by August 2025, with power allocation commencing in September 2025.
2. Policy Reversal Under IMF Pressure: Should the IMF deem the mining plan incompatible with Pakistan’s fiscal targets or energy security needs, Islamabad might rescind or scale back the 2,000 MW allocation. This reversal could tarnish investor confidence, leading to stranded capital and equipment, but would placate IMF negotiators and expedite the next tranche of funding by erasing fiscal and subsidy concerns.
3. Partial Implementation with Renewable Integration: A middle path involves limiting the power allocation to 1,000 MW of coal and 1,000 MW of new solar capacity. By tying mining incentives to verified renewable energy use, Pakistan could argue that its initiative aligns with global climate commitments. This hybrid approach might satisfy the IMF’s environmental and fiscal conditions while still fostering digital asset growth.

Longer-term projections hinge on Bitcoin’s market performance, global energy prices, and Pakistan’s ability to reform its energy sector. If Bitcoin surges above $100,000 by 2028, Pakistan’s national reserve could appreciate by 200 percent, effectively creating a windfall for state finances. Conversely, a prolonged bear market—if Bitcoin falls below $20,000—could leave the reserve virtually worthless, erasing public money and diminishing political capital for digital initiatives.

Conclusion: Balancing Innovation with Responsibility

Pakistan’s decision to allocate 2,000 MW of electricity for Bitcoin mining and AI data centers represents a watershed moment in South Asia’s digital transformation narrative. By deploying idle power capacity toward crypto and AI industries, Islamabad seeks to catalyze economic diversification, generate high-tech employment, and attract billions in foreign direct investment. The establishment of the Pakistan Digital Asset Authority and a government-led Bitcoin reserve further underscores the country’s ambition to become a regional digital finance hub.

However, the International Monetary Fund’s swift and pointed objections highlight the delicate balance between innovation and fiscal responsibility. Pakistan must convincingly address concerns about energy security, legal ambiguity, and budgetary discipline to maintain IMF support and mitigate risks to its fragile grid and public finances. Civil society’s apprehensions over electricity equity and environmental impact, coupled with the potential for stranded assets if policy reverses, underscore the complexity of implementing such a trailblazing strategy.

Ultimately, Pakistan’s success will depend on a pragmatic regulatory framework, robust infrastructure upgrades, and transparent stakeholder engagement. If the government can harmonize its digital aspirations with international best practices—ensuring that mining operations pay full-cost tariffs, comply with stringent AML/CFT standards, and adhere to environmental safeguards—the nation could emerge as a pioneering example of how developing economies leverage blockchain technology responsibly. Conversely, failure to reconcile these priorities risks not only economic losses but also reputational damage that could deter future innovation.

As negotiations with the IMF progress, all eyes are on Islamabad’s capacity to chart a course that harnesses the promise of digital assets while safeguarding energy security, fiscal health, and public welfare. For Pakistan’s generation of young tech entrepreneurs and global investors, the stakes have never been higher: the unfolding policy will determine whether the country can transform its vast human capital and surplus energy into a sustainable digital economy—or whether it will succumb to short-term pressures at the expense of long-term resilience.