Pakistan to Channel Surplus Energy into Bitcoin Mining and AI Data Centres

Pakistan is set to allocate its surplus electricity toward Bitcoin mining and artificial intelligence data centres, aiming to transform excess power into economic assets. Bilal Bin Saqib, head of the Pakistan Crypto Council and adviser to the finance minister, confirmed that discussions are underway with several mining firms to implement this initiative.

The nation's energy sector faces challenges, including high electricity tariffs and surplus generation capacity. The rapid expansion of solar energy has further complicated the landscape, as more consumers turn to alternative sources to mitigate high costs. Saqib stated that the location of the mining centres will be determined based on the availability of excess power in specific regions.

Changpeng Zhao, founder of Binance, has been appointed as a strategic adviser to the Pakistan Crypto Council. Zhao, who was sentenced in May last year to four months in prison after pleading guilty to violating U.S. laws against money laundering at the world's largest ... , will support blockchain infrastructure, advise on regulatory frameworks, and assist with national initiatives such as digital currency, mining ... .

Pakistan has an estimated 15-20 million cryptocurrency users and ranks third globally in the freelancer economy, with a growing ... . Saqib emphasized that the country is among the top 10 global crypto ... the lack of regulation. He advocates for regulatory sandboxes to foster innovation and growth in ... .

The government is working on special electricity tariffs to attract crypto mining and blockchain-based data centres, aiming to utilize surplus power at marginal costs while fostering growth in the digital asset industry. The power division has been consulting various stakeholders to develop an attractive electricity tariff for emerging industries without involving any subsidy, which could help absorb surplus power and reduce capacity payments.

Some estimates suggest that Bitcoin miners currently spend up to 60-70% of their total earnings on electricity costs. By offering competitive electricity rates, Pakistan aims to attract global crypto mining firms to establish operations within the country.

The inaugural meeting of the Pakistan Crypto Council, presided over by Finance Minister Muhammad Aurangzeb, focused on the nation's untapped potential in the crypto space. Saqib presented a comprehensive vision and mission for the council, highlighting the current state of Pakistan's crypto landscape and the challenges to widespread adoption of cryptocurrencies. A major area of discussion was the need for regulatory clarity to unlock the full potential of the sector.