Pakistan Plans to Use Excess Electricity for Bitcoin Mining and AI

Pakistan is taking a big step with new plans toward utilizing its excess electricity by channeling it into Bitcoin mining and artificial intelligence data centers, according to Bilal Bin Saqib, head of the Pakistan Crypto Council and adviser to the finance minister. Saqib revealed that discussions with multiple Bitcoin mining companies are already underway. This move comes as the nation seeks practical solutions to address its energy sector challenges, which include high tariffs and a surplus of energy generation capacity that has yet to find a productive outlet.

The energy landscape in Pakistan has grown increasingly complex in recent years. The rapid rise of solar power has shifted consumer preferences, with many opting for alternative sources to escape steep electricity costs. Saqib explained that the location for the proposed mining center would depend on where surplus power is most readily available, ensuring an efficient use of resources tailored to regional strengths.

Strategic Partnerships and Emerging Opportunities

Adding a layer of expertise to this initiative, Changpeng Zhao, the founder of Binance, has been tapped as a strategic adviser to the Pakistan Crypto Council. Zhao, who was sentenced to four months in prison in May 2024 after pleading guilty to U.S. money laundering violations, brings a wealth of experience from his time at the helm of the world’s largest cryptocurrency exchange. His role will focus on strengthening Pakistan’s blockchain infrastructure, guiding regulatory development, and supporting national projects like digital currency adoption, mining operations, and youth education in blockchain technologies.

Saqib highlighted Pakistan’s significant foothold in the crypto world, noting that the country boasts between 15 and 20 million cryptocurrency users. This places Pakistan among the top 10 global crypto adopters, despite the absence of formal regulations. Beyond crypto, the nation ranks as the third-largest freelance economy worldwide, with a fintech sector that continues to expand at a steady pace.

The council’s vision extends beyond energy management. Saqib emphasized the need for regulatory sandboxes, which would provide controlled environments for testing new financial technologies. He believes this approach could spark innovation and growth, particularly within the fintech and freelance sectors that are vital to Pakistan’s economy.

Equally important is the focus on education and skill development. Saqib stressed that equipping Pakistan’s youth with expertise in blockchain and artificial intelligence could unlock new job opportunities and bolster economic growth. By enhancing digital service exports, the country could establish itself as a key player in the global tech talent market. This strategy not only addresses surplus power but also positions Pakistan to capitalize on the rising demand for emerging technologies.

With a growing population of tech-savvy individuals and an untapped energy reserve, Pakistan stands at a crossroads. The integration of Bitcoin mining and AI data centers could mark a turning point, aligning the nation’s resources with its ambitions. As discussions with mining firms progress and Zhao’s advisory role takes shape, the coming months will reveal how effectively Pakistan can transform its energy surplus into a catalyst for technological and economic advancement.