Pakistan is exploring ways to manage its surplus electricity by utilizing bitcoin mining. The government is reportedly analyzing ways to convert unused energy into profits and potentially make the country a mining hub.

Officials believe this will solve Pakistan’s energy problems and attract global investors.

Bitcoin mining using surplus electricity was discussed at the first meeting of the newly formed Pakistan Crypto Council (PCC). Finance Minister Muhammad Aurangzeb along with top officials from State Bank and Securities and Exchange Commission attended the meeting.

The agenda was to find out how Pakistan can integrate Bitcoin in its financial system and use excess electricity.

“This is the beginning of a new digital chapter for our economy,” Aurangzeb said, adding:

“We are committed to build a transparent, future-ready financial system that not only fuels innovation but also puts Pakistan on the global map as a leader in blockchain and digital assets.”

Bilal Bin Saqib, CEO of PCC, shared the vision of converting Pakistan’s surplus electricity into an economic advantage. “We can convert a liability into an asset,” he said.

Bitcoin mining requires a lot of electricity but can be profitable, and this characteristic can be leveraged in cases where excess energy exists. China and Kazakhstan initially welcomed mining but later imposed restrictions due to power consumption issues.

Pakistan sees an opportunity here. The country has excess electricity due to low demand or infrastructure problems. Instead of letting it go to waste or damage the grid, the government is considering using it to power bitcoin mining operations.

According to industry reports, bitcoin miners spend up to 70% of their earnings on electricity. If Pakistan offers competitive electricity rates, it can attract global mining companies and create new revenue streams.

The Ministry of Energy is working on a special electricity tariff for bitcoin miners.

The plan is to offer cheap electricity without subsidies. Power Minister Awais Leghari discussed this with PCC’s Bin Saqib and the conversation gained momentum at a larger meeting chaired by Finance Minister Aurangzeb.

If the plan moves forward, Pakistan can become a hub for bitcoin mining data centers. The government is also planning to introduce new regulations to oversee the mining industry to ensure international standards.

This idea sounds attractive, but good execution is key. If not managed properly, unsupervised bitcoin mining can break Pakistan’s grid instead of fixing it.

Regulatory clarity is another challenge. Pakistan needs to design its policies carefully to avoid the pitfalls.

For the government, this is not just a business opportunity but a step towards a digital economy. As the Pakistan Crypto Council develops regulations, a pilot project will be set up, creating a national blockchain policy.

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Filed under: Altcoins - @ March 23, 2025 11:43 am