IMF Raises Red Flag Over Pakistan’s Bitcoin Mining Plans, Is $1.5B Loan At Risk?
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Pakistan’s strategic plans to harness its energy resources for Bitcoin mining and artificial intelligence have hit a roadblock, with the International Monetary Fund (IMF) expressing concerns over the initiative. Amid the country’s energy shortages and fiscal challenges, the IMF is seeking immediate clarification from the Finance Ministry on its legality and power allocation. Significantly, this development validates concerns raised by CoinGape in a recent report, highlighting potential IMF scrutiny. Pakistan Faces Scrutiny over Bitcoin Mining Initiative As reported by Samaa, a local news media, Pakistan faced increased scrutiny from the IMF regarding its potential plans to allocate 2000 MW of power for Bitcoin mining and AI. Sources within the Finance Ministry revealed that the IMF was not informed about Pakistan’s crypto mining plan. The familiar sources added that the global lender questioned cryptocurrencies’ legal status in the country. However, the possibility of Pakistan establishing a Bitcoin reserve hangs in the balance amid the ongoing scrutiny. In a recent report, CoinGape highlighted the IMF’s possible concerns over Pakistan’s Bitcoin reserve plan, particularly given the IMF’s recent interactions with El Salvador. With El Salvador, the authority reached a state-level agreement that included requests for the country to refrain from purchasing more Bitcoin and to limit public access to the Chivo wallet app. 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. Reportedly, the government has yet to establish a formal policy framework or address the IMF’s concerns regarding power tariffs and resource allocation. According to insiders, the IMF has emphasized that all policy actions under the Extended Fund…
Filed under: News - @ May 31, 2025 11:12 pm