Islamabad: The International Monetary Fund (IMF) has expressed serious concerns over Pakistan’s decision to allocate electricity to Bitcoin mining operations and Artificial Intelligence (AI) data centers without prior consultation. The move has triggered questions about transparency and compliance with the conditions of the ongoing IMF loan program.
Sources say the IMF was not informed in advance about these developments and has formally asked the government to clarify its position. The Fund raised objections to the use of public electricity for crypto-related ventures, particularly when cryptocurrency remains unregulated and unofficial in Pakistan. It also questioned whether such energy allocations are feasible amid Pakistan’s ongoing power shortages and circular debt crisis.
A virtual meeting is expected to take place between the IMF delegation and Pakistani officials, where the issue of power supply to Bitcoin mining and AI will be discussed in detail. The IMF is particularly concerned about how these decisions could impact electricity tariffs for the general public, which is already under pressure due to inflation and rising fuel costs.
During current budget negotiations, Pakistan’s economic team is already facing strict scrutiny from the IMF, especially regarding fiscal discipline, energy subsidies, and revenue targets. The inclusion of high-energy-consuming projects like crypto mining has further complicated talks, and more rigid questioning from the IMF is expected.
Despite the tension, both sides have agreed to continue virtual discussions. However, IMF officials have emphasized that under the loan program, all major economic and energy policy decisions must be made in full consultation with the Fund to avoid jeopardizing future disbursements.