IMF raises concern as Pakistan allocates 2000 MW for Bitcoin mining, possibly putting its $1.5B loan program at risk.
Pakistan’s strategic initiatives to exploit its energy resources for Bitcoin mining and artificial intelligence have encountered obstacles, as the International Monetary Fund has raised reservations regarding the endeavor.
In light of the nation’s energy deficits and financial difficulties, the IMF requests prompt elucidation from the Finance Ministry about its legal authority and resource distribution.
This development notably corroborates the worries articulated by CoinGape in a previous paper, emphasizing the possibility of IMF monitoring.
Pakistan Under Examination Regarding Bitcoin Mining Initiative
According to Samaa, a local news outlet, Pakistan is under heightened examination by the International Monetary Fund concerning its prospective intentions to designate 2000 MW of electricity for Bitcoin mining and artificial intelligence.
The Finance Ministry insider disclosed that the IMF was not apprised about Pakistan’s cryptocurrency mining initiative.
Sources indicated that the international financial institution scrutinized the legal position of cryptocurrencies within the nation.
The prospect of Pakistan creating a Bitcoin reserve remains uncertain due to continuous scrutiny.
A recent analysis by CoinGape emphasized the IMF’s potential apprehensions regarding Pakistan’s Bitcoin reserve strategy, especially in light of the IMF’s previous engagements with El Salvador.
The authority established a state-level deal with El Salvador, which contained stipulations for the nation to cease further Bitcoin acquisitions and to restrict public access to the Chivo wallet application.
As per the report, Pakistan is one among the IMF programme nations and was granted $1 billion recently. The overall total loan amount is $1.5 billion with next programme review in June, 2025. Considering, IMF has maintained anti-crypto with other programme nations including El Salvador, it becomes highly possible with Pakistan as well.
The government has not yet formulated a comprehensive policy framework or addressed the IMF’s concerns about power rates and resource distribution.
Insiders report that the International Monetary Fund has underscored the necessity of prior consultation for all policy decisions under the Extended Fund Facility (EFF).
Nevertheless, the International Monetary Fund has not publicly commented on the issue. A representative stated,
There is a fear of further tough talks from the IMF on this initiative. The economic team is already facing stiff questions, and this move has only added to the complexities of the ongoing talks.
Will Pakistan Create Bitcoin Reserve In Light Of IMF Oversight?
During his recent address at the Bitcoin Conference, Pakistan’s cryptocurrency authority, Bilal Bin Saqib, disclosed the nation’s intentions to adopt a Strategic Bitcoin Reserve.
He disclosed intentions to concentrate on Bitcoin mining, aiming to position Pakistan as the vanguard of the global cryptocurrency sector.
Saqib expressed, “We invite all miners and infrastructure developers to come to Pakistan and collaborate with us.”
Despite the government’s eagerness to utilize cryptocurrencies and blockchain technology, the lack of a defined policy framework and the IMF’s apprehensions on legality and power distribution provide substantial obstacles.
The group is anticipated to conduct a focused virtual session with Pakistani officials to evaluate the strategy for supplying electricity to Bitcoin mining and AI data centers.
