The International Monetary Fund (IMF) has expressed concerns regarding Pakistan's decision to allocate 2,000 megawatts of electricity for cryptocurrency mining and artificial intelligence data centers. This initiative is part of ongoing budget discussions and a broader digital economy strategy.
IMF Concerns
The IMF has called on the Pakistani government to clarify the legality of its electricity allocation for crypto mining. According to sources within the Finance Ministry, the decision was made without IMF consultation, raising questions about the legal status of digital assets in the country.
Formation of New Digital Asset Authority
At the event announcing the launch of the Bitcoin wallet, the Pakistan Digital Asset Authority (PDAA) was introduced, which will regulate crypto exchanges, wallets, and decentralized finance platforms. The event was attended by notable figures, including U.S. Vice President JD Vance.
Legal and Energy Allocation Issues
Pakistani authorities are also facing questions regarding the legality of electricity distribution. The IMF has stated that all policy measures must be taken in consultation with them, adding further complexity to ongoing negotiations.
In summary, while Pakistan is taking steps towards the integration of digital assets into its economy, its actions face scrutiny from the IMF. Negotiations with the international financial institution are expected to continue to reach an agreement on the matter.
