IMF seeks urgent clarification from Pakistan on 2,000MW power allocation for Bitcoin Mining

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The IMF has expressed concern over Pakistan supplying electricity to Bitcoin mining operations and AI data centers, especially as the country faces ongoing power shortages.

According to a local news report, the International Monetary Fund (IMF) has requested that Pakistan promptly clarify its intentions regarding power allocation for Bitcoin mining, as the nation grapples with electricity shortages and financial challenges. The IMF delegation is expected to hold a separate virtual meeting with Pakistan’s Finance Ministry to specifically address the power distribution issue.

Last week, Pakistan announced that it would allocate 2,000 megawatts of electricity to operate Bitcoin mining facilities and artificial intelligence (AI) data centers.

Earlier this month, the IMF approved a $2.4 billion loan for Pakistan and has since been engaging the country in discussions about its budget strategy.The organization has consistently cautioned nations about the potential risks associated with government involvement in Bitcoin purchases.

Finance Ministry sources revealed that Pakistan did not involve the IMF in its decision to allocate power for Bitcoin mining. However, the local news report, citing individuals familiar with the matter, noted that the IMF has restated its requirement for countries receiving support under the Extended Fund Facility (EFF) to consult the organization on all policy adjustments.

A representative participating in the budget discussions with the IMF informed the local news outlet Samaa:

There is a fear of further tough talks from the IMF on this initiative [of allocating electricity to Bitcoin mining]. The economic team is already facing stiff questions, and this move has only added to the complexities of the ongoing talks.

Pakistan intends to convert three underused coal power plants to supply energy for Bitcoin mining operations and AI data centers. However, the IMF has raised concerns about the potential effects of this plan on electricity rates and distribution systems.

In April, Pakistan’s National Electric Power Regulatory Authority announced reductions in electricity prices for various consumer categories. However, these cuts followed an increase in base power tariffs that the authority had introduced the previous year.

Pakistan Accelerates Efforts to Embrace Cryptocurrency

In recent months, Pakistan has swiftly shifted its position on cryptocurrencies, unveiling multiple initiatives and strategies aimed at adopting and regulating digital assets.

In March, industry leaders established the Pakistan Crypto Council (PCC) to regulate crypto assets, promote adoption, and integrate them into the nation’s financial system. in early April, the council appointed former Binance CEO Changpeng Zhao (CZ) as its strategic advisor.

Toward the end of last month, the Pakistan Crypto Council (PCC) signed a Memorandum of Understanding (MoU) with World Liberty Financial, a decentralized finance initiative closely linked to former President Donald Trump and his sons.

On May 21, acting on the PCC’s recommendation, the government created the Pakistan Digital Assets Authority (PDAA). The event was attended by U.S. Vice President JD Vance, along with Eric Trump and Donald Trump Jr.

The PDAA will serve as the primary regulatory authority, overseeing the licensing of digital asset service providers, promoting innovation, and ensuring compliance with the Financial Action Task Force’s (FATF) guidelines.

During the Bitcoin 2025 conference on Thursday, Bilal bin Saqib, serving as the crypto adviser to Prime Minister Shehbaz Sharif, introduced Pakistan’s first strategic Bitcoin reserve—an announcement that has drawn attention from the IMF. He also revealed the rollout of a national Bitcoin wallet and stated:

Our youth are online and on-chain. Pakistan, with over 40 million crypto wallets and an average age of 23 years, is now being recognised for its future rather than its past.

Marton K.
Marton K.https://thecoingraph.com
Marton is seasoned crypto and finance journalist with over four years of experience. He has contributed to several high-profile outlets.

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