EddieJayonCrypto
2 Jun 25
The IMF has requested urgent clarification from Pakistan regarding its plan to allocate 2,000MW of power to Bitcoin mining and AI data centers amid ongoing electricity shortages and fiscal challenges. Pakistan did not inform the IMF beforehand, causing concerns during budget talks and about the impa...
The International Monetary Fund (IMF) has urgently demanded clarification from Pakistan over its plan to allocate 2,000 megawatts (MW) of power to Bitcoin mining and artificial intelligence (AI) data centers amid persistent electricity shortages and fiscal challenges.Pakistan's Finance Ministry did not inform the IMF in advance about this power allocation, raising concerns during budget negotiations. The IMF stresses that countries receiving aid under its Extended Fund Facility (EFF) must consult on policy changes. This unexpected move has complicated ongoing discussions, with officials expressing fears of tougher IMF scrutiny.To supply this power, Pakistan intends to repurpose three underutilized coal power plants. However, the IMF worries about the potential impact on electricity tariffs and distribution, especially since Pakistan has recently implemented mixed electricity tariff adjustments.Meanwhile, Pakistan is swiftly embracing cryptocurrencies and crypto regulation. The country has established the Pakistan Crypto Council (PCC) to oversee crypto asset regulation and adoption. Notably, former Binance CEO Changpeng Zhao (CZ) has been appointed as strategic advisor to the PCC.Further solidifying its crypto ambitions, Pakistan recently launched the Pakistan Digital Assets Authority (PDAA) as a regulatory body responsible for licensing digital asset service providers and compliance with international standards.Highlighting its deepening crypto engagement, Pakistan unveiled a strategic Bitcoin reserve and launched a national Bitcoin wallet, signaling a youth-driven embrace of blockchain technology. With over 40 million crypto wallets and a median age of 23 years, officials emphasize Pakistan’s focus on a crypto-forward future despite IMF concerns.This unfolding situation raises significant questions: How will Pakistan balance urgent energy needs and fiscal stability with its ambition to become a cryptocurrency hub? Will the IMF’s concerns lead to policy adjustments or stricter financial oversight? The answers will shape both Pakistan’s economic future and its role in the global crypto landscape.