Pakistan has introduced a major initiative to channel its surplus electricity into Bitcoin mining and the development of artificial intelligence (AI) infrastructure. The decision arrives at a time when the global cryptocurrency market is showing signs of recovery, offering a strategic opportunity for the country to capitalize on its underutilized energy resources while embracing the growing potential of blockchain technologies.

Until recently, Pakistan maintained a skeptical stance on cryptocurrencies. In 2023, both the State Bank of Pakistan and the Ministry of IT and Telecom implemented a strict ban on digital assets, with government officials publicly stating that cryptocurrencies would never be legalized as a form of payment or investment. However, in a notable policy reversal, the government has begun crafting a regulatory framework for crypto investments and blockchain adoption. This pivot aligns with Pakistan’s broader economic goals of attracting foreign investment and fostering innovation in emerging tech sectors.

The renewed interest in crypto is being spearheaded by the newly formed Pakistan Crypto Council, established in March 2025. The council has already made international headlines with its appointment of Binance founder Changpeng Zhao as a strategic advisor. The move is widely seen as an attempt to attract global crypto firms and investors, with the council’s leadership emphasizing Pakistan’s potential as a low-cost, high-growth market with a tech-savvy workforce. According to the council’s CEO, Bilal bin Saqib, the country is no longer content to remain a bystander in the global digital economy. Instead, Pakistan aims to position itself as a regional hub for Web3 development and digital finance.

Energy infrastructure is central to this vision. Pakistan has long grappled with inefficiencies in its power sector, including high tariffs and excess generation capacity. The rise of solar energy adoption has only deepened these challenges by reducing reliance on the national grid. In response, government agencies have begun exploring how to transform this surplus into an economic asset. One key strategy involves partnering with cryptocurrency mining firms to establish operations in regions where electricity is being wasted. These mining centers would not only help monetize idle energy but also alleviate financial burdens caused by capacity payments to idle power plants.

Recent statements from Bitcoin Pakistan, a pro-crypto organization, estimate that the government currently controls more than 10,000 megawatts of surplus electricity that could be redirected toward Bitcoin mining. This initiative is being supported by a proposed electricity tariff plan designed specifically for energy-intensive industries. The new tariff aims to offer affordable rates for operations like crypto mining and AI data processing, without requiring state subsidies—a crucial step toward creating a sustainable, market-driven model.

The timing of this strategy coincides with renewed optimism in the global crypto space. As of mid-April 2025, the total cryptocurrency market capitalization surged past $2.59 trillion, reflecting a 6.57% increase in a single day. With global sentiment improving, Pakistan’s pivot to digital assets could not be more timely.

By harnessing its surplus power and opening the door to regulated crypto activity, Pakistan is taking a calculated leap into the future—one that could reshape its economic landscape and position it as a regional leader in the digital age.