Pakistan's Surplus Energy to Fuel Bitcoin Mining, AI Centers

Pakistan is leveraging its surplus energy to invest in Bitcoin mining and AI data centers, marking a significant shift in its approach to cryptocurrency. The government plans to reduce costly capacity payments by implementing a new electricity tariff, which will support mining ventures. This move directly addresses Pakistan’s surplus electricity generation capacity, which has been exacerbated by reduced demand due to costly electricity rates and the shift to alternative energy sources. The initiative aims to transform a longstanding challenge into a monetization opportunity.

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. The government has recognized that there is at least 10,000 megawatts of surplus energy under its control that can be used to mine Bitcoin.

This initiative comes shortly after the 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.

These plans represent a dramatic shift from Pakistan’s historically cautious stance on digital assets. In 2023, the State Bank of Pakistan and the Ministry of IT and Telecom banned cryptocurrencies. 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. However, nearly two years later, Pakistan has reversed course and 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 and 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.

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. 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.