IMF Demands Urgent Clarifications on Power Allocation

The International Monetary Fund has expressed serious reservations about Pakistan's decision to dedicate 2,000 megawatts of electricity for cryptocurrency mining and artificial intelligence operations. This development comes during critical negotiations regarding Pakistan's extended financial support program, with the IMF requesting immediate explanations about the legal basis and economic rationale behind the power allocation.

Energy Priorities Questioned During Power Shortages

Local media reports indicate the Fund was blindsided by last week's announcement, which aims to attract blockchain and AI companies to Pakistan. The initiative faces scrutiny as the country grapples with chronic electricity deficits affecting both households and industries. 【Pakistan currently experiences daily power outages lasting 8-12 hours in major urban centers】, raising questions about resource allocation priorities.

Special Session Called on Digital Asset Strategy

IMF representatives conducting virtual negotiations have scheduled a dedicated discussion about the electricity plan. ——This marks the first time cryptocurrency operations have become a central topic in Pakistan's IMF negotiations——. The dialogue will examine potential impacts on power pricing structures and broader economic stability measures.

Regulatory Framework Development Underway

Pakistan's Finance Ministry recently approved establishment of the Pakistan Digital Asset Authority (PDAA) to oversee cryptocurrency exchanges, wallet services, and asset tokenization. The regulatory body intends to align its operations with international standards set by the Financial Action Task Force, though its operational capacity remains untested.

Strategic Bitcoin Reserve Announcement

The power allocation controversy follows Pakistan's high-profile debut of a national Bitcoin reserve at the Bitcoin Vegas 2025 conference. Prime Minister's crypto adviser Bilal bin Saqib simultaneously revealed plans for a government-backed digital wallet system, signaling Islamabad's ambitious digital finance agenda despite economic challenges.

Energy Utilization Debate Intensifies

Earlier proposals from Pakistan's National Crypto Council suggested using surplus electricity for cryptocurrency mining. However, energy analysts note the country currently has no meaningful power surplus, with 【peak demand exceeding supply by 4,500 megawatts】 during summer months. The IMF's intervention highlights growing international concern about cryptocurrency operations in economically vulnerable nations.

Regulatory Advisors Join Government Efforts

In a strategic move, Pakistan appointed Binance co-founder Changpeng Zhao as a cryptocurrency adviser in April. This appointment forms part of broader efforts to develop blockchain infrastructure while navigating complex international financial relationships. The coming weeks will reveal whether Pakistan can balance its digital asset ambitions with IMF program requirements.