Pakistan to Use 10GW Surplus Electricity for Bitcoin Mining Operations

TLDR

Pakistan aims to utilize its 10GW surplus electricity for Bitcoin mining
The government is in talks with multiple mining companies to optimize energy use
Nearly 40% of the surplus power comes from renewable sources
Changpeng Zhao, Binance founder, will serve as strategic advisor to Pakistan’s Crypto Council
Pakistan has 15-20 million crypto users despite lack of formal regulation

Pakistan is exploring ways to allocate its surplus electricity to Bitcoin mining, according to Bilal bin Saqib, the head of Pakistan’s Crypto Council and advisor to the finance minister. The country generates approximately 10 gigawatts of surplus electricity that currently goes unused, costing the government millions in unspent power obligations.

Pakistan’s energy sector faces several challenges, including high electricity tariffs and excess generation capacity. The rapid growth of solar energy has further complicated the situation as more consumers turn to alternative energy sources to reduce costs.

The government is now in discussions with several mining firms to utilize this excess power. The location of the mining centers will be determined based on where surplus power is most readily available in specific regions.

Surplus Energy Potential

Reports estimate that Pakistan’s surplus power capacity ranges from 10,000 to 15,000 MW, depending on seasonal demand and system limitations. While the majority of this power comes from fossil fuels, nearly 40% is derived from renewable sources, including wind, hydroelectric, and solar.

By channeling this unused power into Bitcoin mining, Pakistan hopes to avoid wasting valuable resources while potentially accumulating Bitcoin as a long-term asset. This approach would follow the model of countries like Bhutan, which already uses its surplus hydropower for cryptocurrency mining.

“Pakistan is in the top 10 global crypto adopters despite it not being regularized,” said Saqib in an interview with Reuters. The country reportedly has between 15-20 million crypto users and ranks as the third-largest global freelancer economy.

Strategic Partnerships

Documents viewed by Reuters reveal that Changpeng Zhao, founder of Binance, will serve as a strategic advisor to the Pakistan Crypto Council. Zhao, who was sentenced to four months in prison last year after pleading guilty to violating U.S. anti-money laundering laws, will support blockchain infrastructure development and advise on regulatory frameworks.

His role will also include assisting with national initiatives such as digital currency, mining operations, and youth education in blockchain technologies. This partnership signals Pakistan’s commitment to building expertise in the cryptocurrency sector.

Regulatory Framework Development

The move to embrace Bitcoin mining is part of a broader shift in Pakistan’s approach to cryptocurrency. Earlier this year, the government formed the Crypto Council to explore the potential of cryptocurrencies and blockchain technology.

The council is tasked with creating a regulatory framework for the crypto industry and finding ways to integrate blockchain into Pakistan’s financial infrastructure. Advisors from countries including the UAE, Nigeria, Turkey, and the United States are already involved in shaping the country’s crypto regulations.

Saqib has expressed interest in establishing regulatory sandboxes, which are controlled environments for testing new financial technologies without the full burden of regulation. These would allow for innovation and growth in Pakistan’s fintech and freelancer economy.

The government also intends to legalize crypto trading to attract international investment and bring more foreign capital into the country. This represents a stark departure from past policies that banned cryptocurrency activities in Pakistan.

Saqib emphasized that upskilling Pakistan’s youth in blockchain and AI can drive job creation and boost the economy through increased exports of digital services. The goal is to position the country as a hub for emerging tech talent on the global stage.