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- IMF questions Pakistan’s decision to allocate 2,000 MW of electricity for Bitcoin mining and AI amid financial talks.
- Urgent clarification sought on the legality of crypto mining and its impact on energy supply.
- Pakistan’s push for digital assets faces scrutiny as the IMF questions the economic impact and energy distribution.
The IMF has expressed doubt over Pakistan’s decision to use 2,000 megawatts of electricity for mining Bitcoins and AI, while its financial program with the IMF is still in negotiations. Last week, this new program was announced with the goal of encouraging companies in blockchain and AI to invest in Pakistan. The IMF is expressing concerns as Pakistan discusses its financial program with the Fund.
The IMF requires an urgent explanation from Pakistan’s Finance Ministry. The authorities are mainly concerned that mining cryptocurrencies is against the law and that managing electrical power is essential due to Pakistan’s energy supply issues. Officials from the IMF were not given prior notice and are asking about the legality of cryptocurrencies in the country. The Fund is concerned about the possible results on energy prices and how the electricity will reach end users.
IMF Talks on Energy Allocation
This step is taking place in a time when Pakistan’s energy sector experiences major obstacles. There are frequent power cuts in the country and many are concerned about the long-term sustainability of giving much of the electricity to digital mining. People are worried that this will add even more hardship to Pakistan’s economy.
A person who is familiar with the talks stated that this move might harm the country’s relations with the International Monetary Fund (IMF). There is a fear that this could create more difficulties in talks with the IMF.
The team is already dealing with lots of tough issues and the new development has only made it more complicated. The IMF will hold a virtual session with Pakistani officials to express their concerns. And talk about the results of electricity dedicated to Bitcoin mining and AI.
Pakistan Advances Crypto Regulation
However, the idea behind assigning electricity to digital assets is to increase their integration into Pakistan’s economy. On May 21, the Ministry of Finance accepted the proposal to create the Pakistan Digital Asset Authority (PDAA). Digital exchanges, wallets, stablecoins and decentralized finance (DeFi) platforms will be governed by the PDAA. Making sure the country adheres to worldwide rules.
This news came just after Pakistan took part in the Bitcoin Vegas 2025 conference, where Bilal bin Saqib, the Prime Minister’s crypto adviser, announced a plan for a national Bitcoin wallet.
The government is now more actively promoting digital finance, which is a big change from its past stance on cryptocurrencies. Forming the National Crypto Council earlier this year was a move to regulate digital assets. And entice investments from foreign countries.
