Pakistan Harnesses Surplus Energy for Bitcoin and AI
In a significant policy reversal, Pakistan is leveraging its surplus electricity to power Bitcoin mining and artificial intelligence (AI) infrastructure, signaling a new era of digital and energy innovation for the country.
After years of stringent restrictions on cryptocurrencies, Pakistan is now embracing blockchain technologies, aiming to transform underutilized power resources into economic opportunity. The shift follows a broader recovery in global crypto markets, with the total market capitalization reaching $2.59 trillion — a 6.57% increase in a single day.
From Energy Surplus to Digital Value
Amid persistent issues of high tariffs and low electricity utilization, Pakistan is redirecting at least 10,000 megawatts of government-controlled surplus power into high-demand sectors. These include Bitcoin mining farms and AI data centers, especially in regions with overcapacity in electricity generation.
“This is not just about mining Bitcoin — it’s about monetizing dormant energy assets and establishing Pakistan as a hub for digital innovation,” said Bilal Bin Saqib, CEO of the newly formed Pakistan Crypto Council and adviser to the Ministry of Finance.
The strategy also provides a practical solution to the growing adoption of solar energy across the country, which has led many households and businesses to rely less on the national grid — increasing the strain of capacity payments on the government.
A Regulatory U-Turn
Until recently, Pakistan had taken a firm anti-crypto stance. In 2023, the State Bank of Pakistan (SBP) and Ministry of IT and Telecom had imposed a blanket ban on digital assets, asserting they would never be legalized. However, growing public interest, global adoption, and the potential for foreign investment prompted a reassessment.
The change in policy became official in March 2025 with the launch of the Pakistan Crypto Council. The council is tasked with developing a regulatory framework for digital assets, in line with Pakistan’s long-term ambitions to position itself as a digital-first economy.
Adding momentum to the transformation, Binance founder Changpeng Zhao was recently appointed as a strategic advisor to the council.
“Pakistan is done sitting on the sidelines,” said Saqib. “We want to attract international investment because we’re a low-cost, high-growth market with a Web3 native workforce ready to build.”
Conclusion
The country’s dual push toward blockchain and AI aligns with the global trend of pairing data-heavy technologies with sustainable energy solutions. Officials believe that mining operations and AI data centers will not only absorb surplus electricity but also stimulate job creation and infrastructure development in remote areas.
If successful, Pakistan’s model could serve as a blueprint for other emerging markets with similar energy imbalances and ambitions to break into the digital economy.
