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Pakistan is leveraging surplus energy for Bitcoin mining and AI data centers, transforming its energy surplus into economic opportunity.
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The government plans to reduce costly capacity payments by implementing a new electricity tariff, supporting mining ventures.
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Despite past cryptocurrency bans, Pakistan is reversing its stance, establishing a crypto council and developing regulatory frameworks for blockchain and digital assets.
Pakistan harnesses its surplus energy by investing in Bitcoin mining and AI data centers, marking a decisive shift in its approach to cryptocurrency.
From Surplus Power to Profits: Pakistan’s Bitcoin Mining Strategy
According to Reuters, the move directly addresses Pakistan’s surplus electricity generation capacity. This persistent issue is exacerbated by reduced demand due to costly electricity rates and the shift to alternative energy sources. This initiative, driven by the government’s recognition of untapped energy resources, aims to transform a longstanding challenge into a monetization opportunity.
Strategic Discussions with Mining Firms
Bilal Bin Saqib, chief of the newly formed Pakistan Crypto Council, confirmed that discussions with several mining firms are underway. He emphasized that the establishment of mining centers would be aligned with specific regions with excess electricity. “There’s at least 10,000 megawatts of surplus energy under government control that can be used to mine Bitcoin,” Bitcoin Pakistan noted.
Revised Electricity Tariff Framework
Meanwhile, the announcement came shortly after DAWN reported on Pakistan’s power division’s plans to devise an electricity tariff. The goal is to absorb excess power and reduce costly capacity payments—without relying on subsidies. This tariff framework is a critical step in supporting the mining initiative by ensuring affordable power for such ventures.
A Shifting Regulatory Landscape
Notably, these plans represent a dramatic shift from Pakistan’s historically cautious stance on digital assets. In 2023, the State Bank of Pakistan (SBP) and the Ministry of IT and Telecom banned cryptocurrencies. Moreover, Aisha Ghaus Pasha, the then-Minister of State for Finance and Revenue, declared that they would never legalize or permit them as a medium of exchange.
Formation of the Pakistan Crypto Council
Yet, nearly two years later, COINOTAG reported that Pakistan had reversed course. It has intensified efforts to regulate and integrate blockchain technology and digital assets into its financial landscape. In line with this, the government established the Pakistan Crypto Council in March 2025. Earlier this week, the government appointed Binance’s founder and former CEO, Changpeng Zhao, as the council’s Strategic Advisor. This move reflects international confidence in Pakistan’s blockchain future.
International Collaborations to Foster Growth
“Together with Changpeng Zhao, they’re building the future of finance, empowering millions, and placing Pakistan on the global Web3 map,” an analyst wrote on X (formerly Twitter). With a regulatory framework taking shape and global expertise on board, the country could likely carve out a significant role in the digital economy, blending innovation with pragmatism.
Conclusion
In summary, Pakistan’s strategy to convert surplus electricity into resources for Bitcoin mining and AI centers represents a marked turnaround in its approach to cryptocurrency. With the establishment of regulatory frameworks and the involvement of international figures like Changpeng Zhao, Pakistan is poised for a significant transformation in its economic landscape, setting a strong foundation for a flourishing digital economy.
