TLDR
- Pakistan plans to allocate part of its 10GW surplus electricity for Bitcoin mining
- The government is collaborating with mining companies and forming a Crypto Council
- Changpeng Zhao, Binance founder, will serve as strategic advisor to Pakistan’s Crypto Council
- Pakistan has 15-20 million crypto users despite lack of regulation
- The initiative aims to reduce wasted power while accumulating Bitcoin as a long-term asset
Pakistan is taking steps to convert its energy surplus into digital assets by allocating part of its 10GW surplus electricity to Bitcoin mining operations.
Bilal bin Saqib, the head of Pakistan’s Crypto Council and advisor to the finance minister, confirmed discussions with Bitcoin miners on Wednesday, indicating a major shift in the country’s approach to cryptocurrency.
Pakistan generates approximately 10GW of surplus electricity, much of which goes unused due to underutilization. This wasted energy costs the government millions in unspent power obligations. Reports suggest the country’s surplus power capacity could range from 10,000 to 15,000 MW, depending on seasonal demand and system limitations.
While the majority of this power comes from fossil fuels, nearly 40% is derived from renewable sources, including wind, hydro, and solar. The rapid expansion of solar energy has further complicated Pakistan’s energy landscape, as more consumers turn to alternative energy sources to offset high costs.
Strategic Partnerships and Planning
The location of the mining centers will be finalized based on the availability of excess power in specific regions, according to Saqib. By channeling this unused electricity into Bitcoin mining, Pakistan aims to join nations like Bhutan, which already uses its surplus hydropower for cryptocurrency operations.
Documents reviewed by Reuters reveal that Changpeng Zhao, founder of Binance, will serve as a strategic advisor to the Pakistan Crypto Council. Zhao was sentenced to four months in prison last May after pleading guilty to violating U.S. laws against money laundering at Binance, the world’s largest cryptocurrency exchange.
His role on the Pakistan council will include supporting blockchain infrastructure, advising on regulatory frameworks, and assisting with national initiatives. These initiatives encompass digital currency, mining, and youth education in blockchain technologies.
The government is working with mining companies to optimize energy use and create a system that benefits both the national economy and the cryptocurrency sector. This approach could allow Pakistan to convert wasted resources into a valuable digital asset.
Evolving Crypto Landscape in Pakistan
This energy strategy fits into a broader shift in Pakistan’s approach to cryptocurrency policies. The current government has positioned itself as tech-forward and pro-youth, making major strides in developing a crypto-friendly environment.
Earlier this year, Pakistan formed the Crypto Council to explore the potential of cryptocurrencies and blockchain technology. The council is tasked with creating a regulatory framework for the crypto industry and finding ways to integrate blockchain into Pakistan’s financial infrastructure.
According to Saqib, Pakistan has 15-20 million crypto users and ranks as the third-largest global freelancer economy, with a growing fintech space. “Pakistan is in the top 10 global crypto adopters despite it not being regularized,” he noted.
The government intends to legalize crypto trading to attract international investment and bring more foreign capital into the country. Advisors from countries including the UAE, Nigeria, Turkey, and the US are already involved in shaping Pakistan’s crypto regulations.
Saqib advocates for regulatory sandboxes, or safe environments for testing, to foster innovation and growth in the fintech and freelancer economy. He believes that upskilling Pakistan’s youth in blockchain and AI can drive job creation and boost exports through digital services.
The initiative represents a complete reversal from past policies that banned cryptocurrency activities in Pakistan. By embracing Bitcoin mining, the country hopes to avoid wasting valuable resources while accumulating Bitcoin as a long-term asset.
Pakistan’s energy sector has been facing challenges, including high electricity tariffs and surplus generation capacity. This new approach aims to address these issues while positioning the country as a hub for emerging tech talent on the global stage.
