IMF Warns Against Pakistan’s Power Push for Bitcoin Mining, AI Data Centers

The International Monetary Fund (IMF) is pushing back on Pakistan’s plan to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence (AI) data centers as the country navigates tough financial negotiations with the Fund.

The initiative, unveiled last week, is part of a broader push to attract blockchain firms, AI companies, and crypto miners to Pakistan.

However, according to a report by local outlet Samaa, the IMF has flagged several concerns — primarily the legality of crypto mining in the country and the strain such a move could place on its already fragile power grid.

IMF Seeks Urgent Clarification on Pakistan’s Crypto Mining Plan

The IMF was reportedly not consulted ahead of the announcement and is now seeking urgent clarification from the Finance Ministry.

With Pakistan facing chronic energy shortages and inflationary pressures, the Fund has also warned about potential knock-on effects on power tariffs and resource distribution.

“There is a fear of further tough talks from the IMF on this initiative,” an official involved in the negotiations told Samaa.

“The economic team is already facing stiff questions, and this move has only added to the complexities of the talks.”

The IMF delegation, which is currently holding virtual discussions with Pakistani authorities, is expected to hold a dedicated session on the electricity plan for Bitcoin mining and AI data centers in the coming days.

The power allocation is part of a wider national strategy to integrate digital assets into Pakistan’s economy.

A key piece of this strategy is the new Pakistan Digital Asset Authority (PDAA), approved by the Finance Ministry on May 21.

The PDAA will oversee the regulation of exchanges, wallets, stablecoins, decentralized finance (DeFi) platforms, and the tokenization of national assets in line with global standards, including those of the Financial Action Task Force (FATF).

Pakistan Launches Strategic Bitcoin Reserve

The move follows Pakistan’s surprise debut of its first strategic Bitcoin reserve at the Bitcoin Vegas 2025 conference last week.

During the event, Bilal bin Saqib, crypto adviser to Prime Minister Shehbaz Sharif, unveiled plans for a national Bitcoin wallet and reaffirmed the government’s support for the digital asset sector.

Pakistan began shifting its crypto policy earlier this year with the proposal of a “National Crypto Council,” tasked with building a regulatory framework and driving foreign investment into the country’s emerging crypto ecosystem.

Last week, Pakistan Prime Minister Shehbaz Sharif elevated Bilal Bin Saqib to the role of Special Assistant to the PM on Blockchain and Crypto, granting him the status of a minister of state.

As Special Assistant, Saqib will be tasked with key responsibilities: drafting FATF-compliant crypto regulations, launching state-backed Bitcoin mining projects, and overseeing blockchain integration in governance, land records, and finance.

He will also supervise licensing of virtual asset service providers and advance investor protection measures in the Web3 space.

The post IMF Warns Against Pakistan’s Power Push for Bitcoin Mining, AI Data Centers appeared first on Cryptonews.

Credit: Source link