Key Takeaways

• The allocation of electricity is part of a broader effort by Pakistan to integrate digital assets into its economy, which includes the creation of the Pakistan Digital Asset Authority (PDAA).

• Pakistan has launched its first Bitcoin reserve and plans to introduce a national Bitcoin wallet to support the local digital asset sector.

• Pakistan is increasingly adopting a more favorable stance toward cryptocurrencies, with the government proposing a National Crypto Council to regulate digital assets and attract foreign investment.

• Changpeng Zhao has been appointed as an adviser to the National Crypto Council to guide future development.

IMF Questions Pakistan’s Electricity Distribution

In addition to the concerns about the allocation of electricity for Bitcoin mining, the international body has also questioned the legality of such activities in the country alongside its impact on power tariffs and resource distribution.

The concerns are primarily based on the fact that Pakistan has historically not been able to efficiently allocate its resources, particularly electricity, which has also led to widespread power outages across the nation for many years.

Pakistan’s New Initiative To Attract Startups

Last week, Pakistan announced a new initiative aimed at attracting global blockchain-based companies, autonomous Bitcoin miners, and AI firms to its shores.

Allocating a significant portion of the nation’s power grid, 2,000 megawatts, will be needed to fuel the operations of these tech-driven industries.

Bitcoin Strategic Reserve

The decision follows another recent announcement at the Bitcoin Vegas 2025 conference. At the event, Bilal Bin Saqib, a crypto adviser to Prime Minister Shehbaz Sharif, revealed that Pakistan had launched its first national Bitcoin reserve.

Bilal Bin Saqib Announcing The Pakistani Bitcoin Reserve

Source: X (@cryptocouncilpk)

Bilal also unveiled the government’s plans to introduce a national Bitcoin wallet, signaling Islamabad’s commitment to developing a robust digital economy.

A Step Towards Digital Finance

The electricity allocation is just one part of a larger national plan to promote digital assets within the economy. A significant component of this plan is the establishment of the Pakistan Digital Asset Authority (PDAA), which was approved by the Finance Ministry in May 2025.

The PDAA is designed to regulate crypto exchanges, wallets, stablecoins, DeFi platforms, and to oversee the tokenization of national assets in line with global standards such as those set by the Financial Action Task Force (FATF).

Shifting Stance On Cryptocurrencies

In February 2025, the Pakistani government proposed the creation of a “National Crypto Council” to draft a comprehensive regulatory framework for digital assets. The council’s mandate is to attract foreign investment and build a thriving crypto ecosystem within the country.

Pakistan Has A History Of Shifting Stances On Different Policies

Source: X (@Crypto_Pakistan)

To aid in these efforts, Changpeng Zhao was appointed as an adviser to the council in April, with his main role being to focus on providing strategic insights into crypto regulations, blockchain infrastructure, and the overall adoption of digital assets in Pakistan.

FAQ

Why is the IMF concerned about Pakistan’s decision to allocate 2,000 megawatts of electricity to Bitcoin mining?

The IMF is concerned that this initiative could strain Pakistan’s already limited energy resources, especially given the country’s ongoing power shortages.

Additionally, the IMF is questioning the legality of cryptocurrency mining in Pakistan and its potential impact on energy tariffs.

What is the Pakistan Digital Asset Authority (PDAA)?

The PDAA is a newly established regulatory body tasked with overseeing crypto exchanges, wallets, stablecoins, DeFi platforms, and the tokenization of national assets.

The PDAA aims to bring digital assets under a formal regulatory framework aligned with global standards like those of the Financial Action Task Force (FATF).

What role does Bilal Bin Saqib play in Pakistan’s cryptocurrency efforts?

Bilal Bin Saqib is a crypto adviser to Prime Minister Shehbaz Sharif and played a pivotal role in the announcement of Pakistan’s first Bitcoin strategic reserve. He is also responsible for introducing the national Bitcoin wallet and helping shape the country’s broader digital asset policy.

Who is Changpeng Zhao, and why is he involved in Pakistan’s crypto sector?

Changpeng Zhao is the co-founder of Binance, one of the largest cryptocurrency exchanges in the world. He was appointed as an adviser to Pakistan’s National Crypto Council, where he is expected to provide expertise in crypto regulations, blockchain infrastructure, and digital asset adoption.

What are the potential benefits of Pakistan’s move to allocate electricity for Bitcoin mining?

If successful, this initiative could position Pakistan as a global hub for Bitcoin mining and AI data centers, attracting foreign investment and promoting technological growth.