Pakistan Plans to Use Surplus Electricity for Bitcoin Mining and AI: A New Economic Strategy?

In a surprising but exciting turn of events, Pakistan is planning to use its surplus electricity to power Bitcoin mining farms and AI data centers. Yes, you read that right. Instead of letting all that extra power go to waste, the government is looking to fuel the digital economy—and it could change everything.

Pakistan to Use Surplus Electricity for Bitcoin Mining and AI

Pakistan’s energy sector has been grappling with complex issues for years, from frequent power outages to high tariffs and inefficient utilization of surplus generation capacity. Despite producing more electricity than needed at times, particularly during off-peak seasons, the country has struggled to manage the imbalance effectively.

Now, officials are taking a novel approach: channeling this excess power into Bitcoin mining and artificial intelligence data centers. Bilal Bin Saqib, CEO of the Pakistan Crypto Council and adviser to the finance minister, confirmed that discussions are ongoing with several mining companies. He added that the precise location for these mining facilities would be based on the availability of surplus power in specific regions.

This strategic shift comes at a time when Pakistan is also experiencing a rapid increase in solar energy adoption. Many consumers, driven by high electricity prices, are turning to renewable sources to manage costs—complicating the energy mix but also creating more untapped energy potential that can now be directed toward digital innovation.

The Role of Global Crypto Leaders

Adding weight to this initiative is the involvement of Changpeng Zhao, the founder of Binance, the world’s largest cryptocurrency exchange. Despite facing legal issues in the U.S., Zhao will serve as a strategic adviser to the Pakistan Crypto Council. His role will encompass guidance on blockchain infrastructure, regulatory frameworks, and national initiatives, including digital currency adoption, mining activities, and blockchain education for the youth.

Pakistan’s Quiet Crypto Power

Pakistan has around 15 to 20 million crypto users. It’s actually in the top 10 countries worldwide for crypto adoption, even though crypto still isn’t officially regulated here.

Add to that the fact that Pakistan is the third-largest freelance economy in the world, and you’ve got a country brimming with digital potential. The growing fintech scene is just the cherry on top.

Bilal Bin Saqib says the plan is to create regulatory sandboxes—basically safe spaces where new tech like blockchain can be tested before rolling it out nationwide. He’s also pushing for more training in blockchain and AI so that Pakistani youth can benefit from high-paying digital jobs.

Untapped Goldmine: Crypto Taxes

Here’s the kicker: Pakistan’s crypto market is estimated to be worth $1.6 billion, but it’s mostly flying under the tax radar.

That might be changing soon. According to our latest report, the Federal Tax Ombudsman (FTO) is pressuring the FBR (Federal Board of Revenue) to step up and start taxing this space. That means a whole new revenue stream for a country that could definitely use the boost.

How It Could Transform the Economy

If this plan works out, it could be a game-changer for Pakistan’s economy. Here’s how:

• New Jobs in tech, infrastructure, and digital services
• More exports from freelancers and digital startups
• Increased foreign investment in Pakistan’s tech space
• Higher tax revenue from crypto and digital services
• Improved energy efficiency by using surplus power productively

And let’s not forget that Pakistan could position itself as a global hub for blockchain, crypto, and AI. That’s not just good news for the tech world—it’s a win for the entire economy.

Final Thoughts

Turning excess electricity into digital gold isn’t just a clever idea—it’s a bold step toward a smarter, tech-savvy Pakistan. With the right regulations, the right people on board, and a clear roadmap, this could be the start of something huge.

What do you think? Can Pakistan really become a leader in blockchain and AI by making the most of its energy surplus? Let us know in the comments!