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IMF Questions Pakistan Over Power Supply for Bitcoin Mining, AI
IMF raises concerns over Pakistan’s move to allocate electricity to Bitcoin mining & AI without consultation. Virtual talks underway amid tough budget negotiations.
ND
by News Desk
2025-05-31
IMF Questions Pakistan Over Power Supply for Bitcoin Mining, AI

The International Monetary Fund (IMF) has expressed serious concern over the allocation of electricity for Bitcoin mining and artificial intelligence (AI) operations in Pakistan, sources revealed on Saturday.

According to insiders, the IMF has formally sought clarification from the Pakistani government for moving forward with the electricity supply initiative without taking the global lender into confidence—especially since the legal status of cryptocurrency remains undefined in the country.

The IMF’s concerns emerged during ongoing virtual talks between the IMF delegation and the Pakistani government’s economic team, being held as part of discussions surrounding Pakistan’s upcoming federal budget and its commitments under the Extended Fund Facility (EFF).

Sources said that the IMF raised pointed questions about the rationale behind allocating electricity for crypto mining and AI at a time when Pakistan is already grappling with power shortages and tariff burdens on ordinary consumers. The Fund is particularly concerned that such allocations could divert resources from essential sectors and undermine economic reforms.

"The government did not consult the IMF on this matter, and given the grey legal area surrounding cryptocurrency in Pakistan, the Fund wants detailed justification," a senior official familiar with the matter said.

Virtual Talks to Continue

The IMF has requested that all decisions regarding electricity allocation for such emerging technologies be made transparently and only after proper consultations. The development has added pressure on Pakistan’s economic team, which is already navigating a difficult round of budget negotiations with the IMF.

Sources indicate that the IMF may intensify scrutiny of Pakistan’s broader energy policy and governance during the current review cycle.

Despite the tensions, both sides have agreed to continue virtual talks on the matter. Government officials are expected to provide a formal response and policy clarification in the coming days.

As the government aims to promote technological innovation and attract investment in AI and digital assets, it must also tread carefully to meet IMF conditions and maintain macroeconomic stability.
Tagged:

IMF

PakistanEconomy

Cryptocurrency

BitcoinMining
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