Pakistan Plans to Utilize Part of Surplus Electricity for Bitcoin Mining: Report
Pakistan is reportedly planning to allocate its excess electricity to Bitcoin mining and AI infrastructure, Crypto Council CEO told Reuters. The move comes days after appointing Binance founder Changpeng Zhao as strategic crypto advisor.
Bilal Bin Saqib, the Council’s head and advisor to the finance minister said that the country has been in talks with several Bitcoin mining firms.
The location of the Bitcoin mining centre will depend on the availability of surplus power in some regions, he added.
“Pakistan is in the top 10 global crypto adopters despite it not being regularised,” Saqib told Reuters, adding that the country has 15-20 million crypto users.
Saqib noted that the country aims to foster fintech innovation and growth through regulatory sandboxes, and safe environments for testing.
Further, he said that crypto, blockchain and AI upskilling among the country’s youths would foster job creation and economy. This would boost “exports through digital services, positioning the country as a hub for emerging tech talent on the global stage,” he added.
Pakistan’s Challenging Energy Sector
The South Asian nation has seen structural challenges in its energy sector over the past years, from high electricity tariffs and chronic overcapacity.
Per a 2021 report, Pakistan reportedly generated more electrical capacity than needed. “We are producing much more than we need,” Tabish Gauhar, a special assistant to the prime minister on power, told Reuters at the time.
The surplus energy came after the construction of new power plants, largely coal-fired ones funded by China.
Per estimates from Ember Energy, Pakistan generates 59% share of electricity from fossil fuels and 41% share of electricity from clean sources, which is above the global average of 39%. Further, the country generates 3% electricity from solar and wind.
Global Bitcoin Mining Firms Explore Country’s Potential
In a March 25 interview with Bloomberg, Saqib noted that Pakistan is eyeing on global Bitcoin mining firms to utilize its electricity potential.
“We welcome companies to visit Pakistan to evaluate for Bitcoin mining,” he said, adding that this is the right time to explore mining options.
He also praised the US President Trump, calling him the “biggest, bullish catalyst for crypto in history.”
“I think the US sets the tone for the world. Trump is making crypto a national priority and every country including Pakistan will have to follow suit or will be at the risk of being left behind.”