Pakistan Explores Bitcoin Mining to Utilize Surplus Energy, Attract Investment

Pakistan is exploring the use of Bitcoin mining as a means to utilize its surplus energy, marking a significant shift in the government's stance on cryptocurrencies. This initiative was proposed by Bilal Bin Saqib, the CEO of Pakistan's Crypto Council, during the council's inaugural meeting on March 21. The proposal aims to leverage the country's excess energy to power Bitcoin mining operations, which could potentially stabilize the electrical grid and attract foreign direct investment.

The Crypto Council, which includes key financial and regulatory officials, is also exploring comprehensive regulatory frameworks for cryptocurrencies. This move is part of a broader effort to establish Pakistan as a crypto hub and attract investment. The goal is to build a transparent, future-ready financial ecosystem that empowers the youth and positions Pakistan as a leader in emerging technologies.

This proposal represents a radical departure from the government's previous stance on cryptocurrencies. The recent policy overhaul in the United States, which saw the re-election of Donald Trump and the establishment of pro-crypto policies, has influenced Pakistan's decision to embrace cryptocurrencies. The government of Pakistan moved to regulate cryptocurrencies as legal tender on November 4, 2024, the same day as the elections in the United States. Following Trump's re-election, he quickly established the Working Group on Digital Assets, an executive advisory council tasked with exploring comprehensive regulatory reform on digital assets. This move prohibited the government from researching, developing, or issuing a central bank digital currency (CBDC) and created a Bitcoin strategic reserve and a separate digital asset stockpile in March 2025.

The presence of Bitcoin miners can stabilize electrical grids, as they can absorb excess energy that would otherwise go to waste. This initiative not only addresses Pakistan's energy surplus but also alleviates financial pressures on its power sector. The government is reportedly exploring a special electricity tariff to attract Bitcoin mining operators, further incentivizing the use of surplus electricity for mining operations.

The proposal to use surplus energy for Bitcoin mining was floated at the inaugural meeting of the Pakistan Crypto Council. This move is part of a broader effort to leverage the country's excess energy and reduce energy costs, which could be beneficial for both the energy sector and the economy as a whole. The initiative aims to reduce financial pressure on the energy sector and promote the use of renewable energy sources, which could have long-term benefits for the environment and the economy.

Pakistan is looking to become a regional crypto hub. Officials emphasize the need for a stable and scalable regulatory environment. They also aim to ensure consumer protection, licensing, and compliance with global regulations. The strategy includes pilot programs and gradual rollout phases. The move aligns with global trends in crypto mining. Russia recently legalized the industry, leveraging its abundant energy resources. The U.S. states of Texas and Wyoming have implemented crypto-friendly regulations. Meanwhile, China banned mining in 2021 but still accounts for a significant share of global hashrate. El Salvador has embraced Bitcoin mining using geothermal energy. However, the IMF has urged the country to halt mining operations as part of a financial agreement. Pakistan’s approach could position it as a competitive player in the crypto space.

Pakistan’s finance chief supports a future-ready financial ecosystem. Authorities are working to develop a regulatory structure that ensures transparency and attracts investment. The government is developing a framework to regulate the digital asset sector. Authorities plan to introduce market-based electricity tariffs for crypto mining and blockchain data centers. These tariffs will not rely on subsidies. The initiative aims to reduce financial losses from unused electricity.