Latest news with #China–PakistanEconomicCorridor
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First Post
3 days ago
- Business
- First Post
The many ironies in Pakistan launching a Strategic Bitcoin Reserve
Across major Pakistani cities, citizens endure crippling electricity outages, yet the government has allocated 2,000 MW of surplus electricity for bitcoin mining and artificial intelligence (AI) data centres. Alongside this, there are issues related to FATF, too read more Pakistan, a nation grappling with chronic energy shortages, regulatory challenges, and financial scrutiny, has made headlines with its ambitious foray into cryptocurrency. Bilal Bin Saqib, the newly appointed Special Assistant to the Prime Minister for Crypto and Blockchain, recently unveiled the nation's Strategic Bitcoin Reserve, designed to hold digital assets as a sovereign reserve. While presented as a bold step towards embracing digital finance, the move is fraught with contradictions that border on irony. STORY CONTINUES BELOW THIS AD Lights out at home, but power for Bitcoin? Across major Pakistani cities, citizens endure crippling electricity outages, often extending beyond 12 hours daily. Amid this chronic energy crisis, the government has allocated 2,000 megawatts of surplus electricity for bitcoin mining and artificial intelligence (AI) data centres. This stark inequality points to the government's misplaced priorities, as ordinary Pakistanis grapple with high electricity bills and prolonged blackouts. The roots of this paradox lie in the country's energy infrastructure. Pakistan has significantly increased its electricity generation capacity, reaching approximately 42,131 MW by March 2024. This expansion includes coal, solar, and hydroelectric power plants, many financed under the China–Pakistan Economic Corridor (CPEC) initiative. However, the transmission and distribution infrastructure has not kept pace, leading to inefficiencies and frequent power outages. Furthermore, the energy sector is burdened by a circular debt exceeding $10 billion, resulting from a cycle of unpaid bills between consumers, distribution companies, and power producers. This financial strain hampers maintenance and upgrades of the grid, exacerbating power shortages despite surplus generation. Chinese-funded projects under CPEC have added substantial capacity to Pakistan's power sector. While these projects have increased generation, they come with high capacity payments, obligating Pakistan to pay for electricity regardless of actual consumption. This arrangement contributes to elevated electricity tariffs and financial stress on the energy sector. Balancing on FATF's tightrope Further complicating matters is Pakistan's fraught relationship with the Financial Action Task Force (FATF), the global watchdog against money laundering and terrorist financing. Historically, Pakistan has frequently oscillated in and out of FATF's grey list, indicating heightened scrutiny and ongoing compliance issues. Pakistan was first placed on the FATF grey list in 2008, then removed in 2010 after demonstrating progress. However, it was re-listed in 2012, removed again in 2015, and placed back on the grey list in 2018 due to strategic deficiencies in counter-terrorist financing. In October 2022, Pakistan was removed from the FATF grey list after significant improvements in its anti-money laundering and counter-terrorist financing frameworks. STORY CONTINUES BELOW THIS AD Now, Pakistani authorities claim to be developing a 'comprehensive, FATF-compliant regulatory framework for digital assets.' One must question the practicality of this promise, given the country's shaky track record in financial transparency. Digital currencies, inherently difficult to track, may inadvertently exacerbate the nation's existing vulnerabilities in money laundering and illicit finance. A sovereign wallet—or safe haven for questionable funds? Central to Pakistan's crypto push is the establishment of a national bitcoin wallet to hold state-controlled digital assets. According to Saqib, this reserve would signify Pakistan's confidence in decentralized finance rather than speculation. Yet, skepticism abounds about the potential misuse of this wallet. The transparency challenges intrinsic to cryptocurrency provoke concerns about the national wallet possibly becoming a repository for illicit funds. Given Pakistan's existing FATF compliance struggles, critics suggest that without rigorous oversight, the strategic bitcoin reserve could unintentionally attract illicit financial activities.
Time of India
21-05-2025
- Politics
- Time of India
'Attempt to hoodwink the world doomed to fail': India rejects Pakistan's claim on Balochistan bus attack
NEW DELHI: India on Wednesday firmly rejected Pakistan's allegations of involvement in the deadly suicide bombing targeting a school bus in Balochistan's Khuzdar district, calling them "baseless" and part of a pattern to deflect from its own failings. The ministry of external affairs condemned the attack and expressed condolences for the loss of lives. "India rejects the baseless allegations made by Pakistan regarding Indian involvement with the incident in Khuzdar earlier today. India condoles the loss of lives in all such incidents. However, in order to divert attention from its reputation as the global epicenter of terrorism and to hide its own gross failings, it has become second nature for Pakistan to blame India for all its internal issues. This attempt to hoodwink the world is doomed to fail," a statement by the MEA said. A t least five people, including three children, were killed when a suicide bomber targeted a school bus in Khuzdar, in Pakistan's restive Balochistan province. According to local officials, 38 others were injured. The country's interior ministry said the bombing was carried out using a vehicle-borne improvised explosive device. No group has claimed responsibility for the attack yet, but Balochistan has seen continued unrest for nearly two decades. The province borders Iran and Afghanistan and is home to several armed insurgent groups demanding more autonomy and control over local resources. In recent years, these groups have increasingly targeted infrastructure linked to the China–Pakistan Economic Corridor (CPEC). Pakistani leaders, including Prime Minister Shehbaz Sharif and President Asif Ali Zardari, condemned the attack and vowed action. Interior Minister Mohsin Naqvi said those behind the bombing "do not deserve any leniency."
