IMF Raises Concerns Over Pakistan Energy Use for Crypto Mining

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Pakistan’s Crypto Adventure: A Comedy of Errors or Just a Bad Joke?

  • IMF questions Pakistan’s plan to allocate electricity for crypto mining.
  • Pakistan launches national Bitcoin reserve and digital wallet at Bitcoin Vegas.
  • IMF demands a clear crypto legal framework amid energy and policy concerns.

The International Monetary Fund (IMF) has expressed concern over Pakistan’s plan to allocate 2,000 megawatts of electricity for Bitcoin mining and artificial intelligence (AI) data centers. Because, you know, nothing says “financial stability” like using enough power to light up a small city for a digital currency that fluctuates more than my mood on a Monday morning. 😅

IMF Demands Details on Pakistan’s Crypto Legal Framework

Pakistan has confirmed that it is forming its national Bitcoin reserve at the Bitcoin Vegas 2025 conference. Yes, you heard that right—Bitcoin Vegas! I can only imagine the slot machines: “Spin to win… or lose your life savings!” Bilal bin Saqib, the crypto adviser to the Prime Minister, said that the country wants to develop into a center of digital finance and technology. Because who needs a stable economy when you can have a national Bitcoin wallet? 💸

According to local reports, the IMF has responded very quickly to this announcement. Officials say it has asked the Finance Ministry to provide details on how the crypto policy is implemented and its legal basis. This is very worrying now, as Pakistan is already facing energy troubles and has restricted resources. But hey, let’s throw some electricity at Bitcoin mining and see what happens! What could possibly go wrong? 🤷‍♂️

Reports from inside the Finance Ministry say that the IMF was excluded from the preparation of the new economic action plan. Also, there are no formal government policies for regulating cryptocurrency in place. It’s like trying to bake a cake without a recipe—sure, it might turn out great, but it’s more likely to explode in your face. The IMF has reportedly informed Pakistan that any important reforms taken under the Extended Fund Facility (EFF) must be agreed upon with the Fund. So, good luck with that! 🎢

For this reason, such a plan could make the negotiations even more complex. The official said there is a worry that the IMF may demand tougher measures for this plan. The IMF team, which is virtually meeting with Pakistani officials, is planning to have a separate session to discuss this topic. Because nothing says “fun” like a virtual meeting about crypto regulations! 📞

Finance Ministry Yet to Address IMF Concerns on Crypto Policy

Despite the controversy, Pakistan is continuing its digital shift. On May 21, the creation of the Pakistan Digital Asset Authority (PDAA) was given the green light by the Finance Ministry. It will be responsible for overseeing crypto exchanges, wallets, stablecoins, and decentralized finance (DeFi) platforms. Additionally, the PDAA will oversee the tokenization of all public assets and government debt. Because if there’s one thing we need, it’s more layers of complexity in an already confusing system! 🙃

At Bitcoin Vegas 2025, Bilal bin Saqib said PDAA ensures investor protection and boosts nationwide digital access. He asked foreign investors to consider joining Pakistan’s digital growth. Many people worldwide took an interest in the event, and it was attended by JD Vance and Donald Trump’s sons. Because nothing screams credibility like a family reunion at a crypto conference! 🎉

But the Finance Ministry has not published a statement officially addressing the concerns raised by the IMF. Reports say that the government is moving with care since it is unclear how crypto assets are legally regulated in Pakistan. It’s like trying to navigate a minefield blindfolded—exciting, but probably not the best idea.

Overall, Pakistan’s enterprising move into the digital world has gained attention, yet it causes uncertainty about regulatory rules and budgeting. When discussing with the IMF, the government has to focus on both new ideas and the stability of the economy. Because, let’s face it, who doesn’t love a good balancing act? 🎪

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2025-05-31 23:14