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In a groundbreaking move, Pakistan is set to utilise its surplus electricity to fuel Bitcoin mining operations and artificial intelligence (AI) data centers, marking a significant shift in the country's energy and technology landscapes. According to Bilal Bin Saqib, head of Pakistan's Crypto Council and advisor to the finance minister, this innovative initiative aims to convert power capacity surpluses into economic opportunities within the burgeoning digital infrastructure market.
By using surplus electricity for Bitcoin mining and AI services, Pakistan seeks to address longstanding power sector issues, including high electricity prices and energy wastage, while generating better returns on its energy investments. This strategic move has sparked conversations with mining firms, paving the way for a new era of economic growth and digital innovation in the country.
This policy arrives at a time when Pakistan experiences a rising surplus of energy capacity throughout the nation. Pakistan's national grid suffers from ongoing operational inefficiencies, which have worsened as solar power additions have made power prediction more complex. The government utilizes excess electricity to power high-demand operations involving cryptocurrency mining and Artificial Intelligence for financial gain from unused energy capacities.
Bilal Bin Saqib noted that mining site selection follows the analysis of available surplus electricity throughout regions. Numerous provinces show consistent surplus power capacity so they serve as prime locations for mining-specific facilities. The selected locations will reduce the strain on national power transmission while advancing digital platforms at targeted levels.
Furthermore, Pakistan is also looking to combine AI data centers alongside its Bitcoin mining operations, which would help to meet the country’s goals of modernising technological infrastructure. These AI facilities will, therefore, need to support high-density compute workloads that the surplus power can support. The government is also in ongoing discussions with mining companies to finalise energy off-take agreements and regulatory compliance.
This recent development aims to grow Pakistan's cryptocurrency industry. Pakistan’s growing use of cryptocurrencies—estimated at 15 to 20 million users—has positioned the country as one of the top crypto adopters globally. Despite a formal lack of regulation, Pakistan has emerged as the third-largest freelancer economy in the world, mainly due to the use of fintech solutions. Under Zhao’s guidance, the country intends to accelerate crypto growth and construct an ecosystem supporting domestic and international blockchain ventures.
Saqib mentioned that the Pakistani youth need to be upskilled in blockchain and AI-related technologies as part of the initiative. He sees the country as one that can become a source of emerging tech talent and export digital services worldwide. Educational outreach will focus on developing blockchain engineering skills, decentralized finance (DeFi) infrastructure, and AI modeling.
The efforts will establish new jobs while leading Pakistan to excel as a key member of the digital economy, boosting economic growth. Furthermore, regulatory sandboxes will become operational to allow fintech startups to conduct safe innovation and test new ideas without encountering strict regulatory barriers.
