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IMF Raises Concerns Over Pakistan's 2,000 MW Electricity Allocation for Bitcoin Mining

The IMF seeks urgent clarification on Pakistan's electricity allocation for Bitcoin mining amid ongoing financial negotiations and energy shortages.

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Summary

Pakistan plans to allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers, prompting the IMF to request urgent clarification on this initiative's legality. The decision complicates ongoing negotiations for a $30 billion loan, as the IMF was not consulted. The Pakistan Digital Assets Authority has been established to regulate crypto activities under FATF standards, while a national Bitcoin strategic reserve was announced at the Bitcoin 2025 conference.

Terms & Concepts
  • Bitcoin mining: The process of validating transactions on the Bitcoin network and adding them to the blockchain, typically requiring significant computational power and electricity.
  • Pakistan Digital Asset Authority (PDAA): A regulatory body established to oversee cryptocurrency exchanges, wallets, and stablecoins, ensuring compliance with international frameworks.
  • Financial Action Task Force (FATF): An intergovernmental organization that sets standards to combat money laundering and terrorist financing, influencing regulations in member countries.