07-31-2025 
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The International Monetary Fund (IMF) has denied reports that it vetoed Pakistan’s plan to channel its surplus energy to block reward mining.
In May, Pakistan’s Crypto Council revealed that it was working on an ambitious plan to allocate at least 2,000 MW of electricity to block reward mining. Most of it would be surplus electricity, with millions of Pakistanis abandoning the national grid for cheaper wind and solar energy alternatives.
However, recent local reports claimed that the IMF had rejected the plan. The Washington-based lender reportedly questioned the legality of the plan and the impact it would have on the national grid.
Last week, one local outlet claimed that the Power Secretary, Fakhre Alam Irfan, had told the Senate that the mining plan would likely be dropped due to the lender’s pushback.
The IMF and Pakistan’s Power Division, which oversees the industry, have refuted the claims. Zafar Yab Khan, a spokesperson for the division, told Arab News that the media had misquoted the Secretary.
“He (the Secretary) categorically said that ‘we are still in negotiations with the IMF and discussing with them pros and cons of this initiative and hopeful to reach a solution during these negotiations,'” Khan stated.
He added that the Power Ministry can confirm that it had sufficient electricity to power block reward mining and other data center initiatives.
According to earlier reports, the row between the IMF and the Pakistani government had attracted the attention of the World Bank and other development partners, which are also now involved in the negotiations.
On its part, the IMF also dismissed the allegations. Mahir Binici, Pakistan’s resident representative at the lender, said the two sides were discussing the issue, but nothing had been decided yet.
“IMF staff has held informational discussions at a technical level with the authorities to learn more about their plans related to developing the IT sector,” Binici said.
The IMF’s primary concern was reportedly that the plan would exacerbate economic imbalances in the country, similar to other tax breaks on specific sectors.
“Staff reiterated the importance of maintaining a level playing field for all private sector participants and will continue to engage with the authorities on this as appropriate as plans develop further,” Binici stated.
Meanwhile, the Pakistani government announced the creation of a new digital asset industry regulator on Monday. Known as the Pakistan Virtual Assets Regulatory Authority (PVARA), it was approved by the Cabinet and now awaits the green light from regulators before it takes over.“…the authority will be responsible for issuing licenses, supervising VASPs, setting technical standards, and coordinating compliance with FATF, IMF, and World Bank guidelines,” a statement from the Finance Ministry says.
PVARA was previously proposed as the Pakistan Digital Asset Authority.
Digital asset regulation in Pakistan has been disparate and uncoordinated, with up to four watchdogs sharing responsibility. The securities watchdog has been the most advanced and has been fighting against the central bank’s ban on digital asset payments for years.
PVARA comes four months after the formation of the Pakistan Crypto Council, which has been pushing for the adoption and regulation of digital assets.
Pakistan PM: Double digital payments targets
As digital asset adoption soars in Pakistan, Prime Minister Shehbaz Sharif wants the country to supercharge the growth of its digital economy.
Pakistan has set a short-term target of increasing its mobile money users from 95 million to 120 million and doubling the number of merchants accepting QR payments to 2 million.
However, according to the PM, the targets are not ambitious enough.
“A digital transaction system is essential for bringing transparency to the economy. It is an urgent need of the hour to ease payments between citizens and businesses and raise awareness about the use of digital systems,” he stated, as reported by Arab News.
The government has formed three committees to focus on boosting digital payments, digital public infrastructure, and government payments. Sharif called on the three to present to him workable proposals, although the timeline for the targets was not disclosed.
Pakistan has lagged behind neighbors like India and Bangladesh in terms of digital payments. In India, UPI has significantly boosted uptake; in May, it recorded 18.7 billion transactions, processing $294 billion.
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