Pakistan has angered the International Monetary Fund (IMF) by allocating 2,000 megawatts of electricity for artificial intelligence (AI) data centers and Bitcoin mining without first engaging the lender under the terms of the current bailout.
IMF officials have voiced their disapproval of the action and are anticipated to bring it up in future virtual talks with the federal administration.
The Fund questioned how such a significant investment could be made without first ascertaining whether cryptocurrencies are legal in the nation.
The government has been reminded by the IMF that all significant policy choices need to be discussed jointly and must stay in line with the promises made under the current loan program.
After Pakistan angered IMF, the IMF is gearing up for an examination of Pakistan’s new federal budget’s fiscal framework.
It is believed that the discussions are going to be difficult in light of the government’s previous unmonitored actions.
Lat week, for Bitcoin mining and AI data centers, the Pakistan Crypto Council (PCC) has approved 2,000MW of electricity.
According to the Finance Ministry, the project will make use of extra electricity, create skilled jobs, and draw in foreign capital.
Future plans also included the establishment of fintech and innovation zones, strategic alliances with top blockchain and AI companies, and facilities powered by renewable energy.
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