The International Monetary Fund (IMF) has raised serious concerns over Pakistan’s recent decision to allocate 2,000 megawatts (MW) of electricity for Bitcoin mining and artificial intelligence (AI) data centres without prior consultation. This move appears to be in direct conflict with the conditions agreed upon under the current IMF bailout program.

IMF officials have voiced their reservations ahead of upcoming virtual discussions with the federal government. According to the Fund, the Pakistani government should have first addressed the legal framework surrounding cryptocurrency before making such a significant policy shift. The IMF has reiterated that all key decisions must be aligned with commitments under the existing loan agreement and must involve prior mutual consultations.

The issue arises just as the IMF prepares to evaluate Pakistan’s fiscal framework for the upcoming federal budget. The lender is expected to closely scrutinize the government’s recent unsupervised decisions, making the forthcoming talks potentially difficult.

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Last week, Pakistan designated 2,000MW of electricity for use by Bitcoin mining and AI data centres, an initiative being led by the Pakistan Crypto Council (PCC).

The Finance Ministry has defended the move, stating that the initiative aims to utilise surplus electricity, attract foreign investment, and create employment opportunities in high-tech sectors. The ministry further revealed plans to establish renewable energy-powered facilities, build strategic alliances with leading global blockchain and AI firms, and launch fintech and innovation zones to drive future growth.