ISLAMABAD – Pakistan took a major decision under a broader strategy to monetize surplus electricity, in latest bid to create high-tech jobs, and woo foreign investment, but could Pakistan become a global crypto mining hub after these initiatives?
As country lacks formal legal framework for cryptocurrency, the announcement is said to be key step toward integrating digital assets into the national economy. Finance Minister Aurangzeb described the initiative as major milestone in Pakistan’s digital development strategy, enabling the country to leverage its geographic and economic position to become a digital hub for Asia, the Middle East, and Europe.
With the latest announcement, all eyes are at Bitcoin mining which is an energy-intensive process that uses massive computers to generate new digital coins. With the global Bitcoin network currently consuming over 187 TeraWatt-hours of electricity annually, Pakistani government sees an opportunity to channel its idle energy resources toward digital innovation.
The plan also aligns with the government’s broader digital goals, which include developing renewable energy-powered data centers, promoting fintech hubs, and fostering local AI infrastructure to enhance data sovereignty and reduce dependence on foreign systems.
Despite ambitious goals, experts warn that electricity pricing remains the largest hurdle. Those familiar with the development said Bitcoin mining to be economically viable, and electricity must be priced around 4–5 cents per unit. However, in Pakistan, electricity—mostly generated from imported coal—costs almost double when transmission and distribution are factored in, making mining potentially profitless.
There are also potential conflicts with agreements with IMF and other lenders which restrict preferential treatment for specific industries, and subsidized electricity rates for crypto mining could lead to demands for similar treatment from other industrial sectors.
The country of 242 million continues to experience power outages during peak summer demand, despite having a generation capacity of 45,000 MW—nearly double the peak load, and experts argue that while capacity is not an issue, affordability and distribution inefficiencies hinder 24/7 availability.
Pakistan currently lacks legal recognition for cryptocurrency, and central bank does not endorse it. Regulatory ambiguity could deter investors and raise legal complications. One can take example of US, and Kazakhstan. In Kazakhstan, a surge in crypto mining increased electricity consumption by 7pc, prompting strict government controls. while in US, Bitcoin mining now consumes about 2.3% of national electricity, triggering grid stability concerns and environmental debates.
With rising interest from global investors, including major crypto firms, the success of the project hinges on resolving key issues—chiefly electricity pricing, regulatory reform, and infrastructure readiness.
2,000MW for Crypto: Pakistan’s allocates surplus power for Bitcoin Mining, AI Data Centres
