Can Bitcoin fix Pakistan’s energy problem? Explained 2,000 Megawatt mining approach
Pakistan’s Bitcoin’s idle power paradox and energy plan
In March 2025, Pakistan boasts an installed power capacity of 46,600 MW, a slight increase from last year. Almost 14% of this capacity remains idle, especially in the off-peak winter months when demand can decrease by less than 12,000 MW.
The main issue here lie In capacity payments, fixed fees are paid to power plants even if they make electricity, which is as high as 2.1 trillion Pakistan Rupees ($ 7.45 billion) annually.
This cost will burden consumers even if the plants are dormant.
Fossil fuels, renewable and an unstable grid
There is an additional factor in this problem to consider.
Thermal power (coal and gas) provides 56% of the installed capacity but contributes only 46% of the actual generation, because older, poor plants remain on standby, collecting payments.
While the hydropower, nuclear and renewables fill the gap, Pakistan’s solar adoption has brought up new challenges. Net-metered solar capacity Surged From 1.3 GW to nearly 4.9 GW a year, driven by more than 17 GWs of Solar Solar panels in 2024.
This solar boom, however, leads to grid instability from supply fluctuations, increased electrical tariffs for users who are non-net-metering and uneven access for more difficult households.
Consumers face high electricity rates (~ 16 ¢/kwh for businesses), which fuel a solar rush and deepens the cost of costly imbalance.
Bitcoin’s energy solution to Pakistan
Pakistan’s energy, like structured, showed a unique opportunity: Redirecting up to 2,000 MW of the unexpected power in bitcoin mining and AI data centers.
Proponents argue that it can make money the wasted electricity, ease of grid strain by absorbing excess supply and generating income through digital properties.
However, critics have warned the increase in fossil fuel hope, environmental concerns and if the benefits truly reach ordinary Pakistanis.
The Bitcoin 2,000 Megawatt Mining Strategy: Can Bitcoin solve the energy crisis in Pakistan?
The Pakistan’s energy crisis, marked by expensive, unexpected power plants and increases of bills, took an unexpected turn in May 2025. The government announced a plan to redirect 2,000 MWs of mute electricity toward Bitcoin mining and AI Data Center.
This bold move is led by the newly formed Pakistan Crypto Council (PCC)Led by Bilal Bin Saqib, a tech advisor to the Prime Minister.
Their argument is simple: Turn excessive power into income. Bin Saqib built Pakistan to Bitcoin 2025 in Las Vegas As an ideal location of mining due to cheap, non -electric electricity, which attracts global miners looking for new homes after crackdowns elsewhere.
News outlets such as Reuters and Bloombergs have embraced the story, which has set up as Phase 1 of Pakistan’s digital economy.
While celebrating the crypto blogs, the IMF lifted up concerns About to change power in a country facing blackouts. The government defended the plan by highlighting the 2.8 trillion Pakistan Rupees annual cost of idle plants, a potential of $ 500 million annual income from mining and the creation of thousands of tech jobs.
The underlying question remains whether it is a sustainable long-term solution or a short-term arrangement.
Do you know? Binance co-founder Changpeng Zhao was appointed a strategic counselor to the Pakistan Crypto Council, which indicates the main international interest in the country’s digital asset approach.
Crypto Mining and Energy Reform in Pakistan: How It Works
Pakistan’s bold pivot on bitcoin mining and AI data centers involves concrete operational measures and strategic implementation. In this section, we review a few.
Repurposing old coal plant
The plan relies on the use of underused coal power plants, some operate in 15% capacity, making significant “Take-or-Pay“Costs even idle. It aims to transform a financial liability into a income stream.
However, concerns continue about the high cost of running and impact on the environment of expanding the life of these older plants.
Do you know? The initial phase of Pakistan’s Bitcoin mining plan targets coal-based power projects such as Sahiwal, China Hub and Port Qasim.
Infrastructure and digital frameworks
More than electricity, success requires attraction Foreign mining and AI data center companies to promote operations near electric resources, minimizing delivery losses.
Crucially, the weak infrastructure of the Pakistan grid will need upgrades to handle fluid, electric demands.
Digital, Pakistan creates a national purse of Bitcoin for reserves held by the government and a Pakistan Digital Asset Authority (PDAA) for licensing, taxation and anti-money laundering. Customs breaks on the ASIC Mining Machine are also offered to attract investment.
The challenge of the price of electricity
The main drawback is electricity pricing. At commercial rates (~ $ 0.22/kwh), Mining In Pakistan is significantly more expensive than competing regions.
A suggested subsidized rate of $ 0.09/kWh aims to improve competitiveness, but potential pushbacks from the IMF still face, as energy subsidies oppose bailout agreements.
Pakistan’s Crypto Mining Crypto Energy Mining Benefits
The initiative aims to convert Pakistan’s excess electricity from underutilized thermal power plants to a stream of income through Bitcoin Mining and AI Data Center. It aims to transform capacity payments, a financial burden, to high amounts of digital assets.
In addition, Pakistan aims to use its strategic location to become a “digital bridge” between Asia, Europe and the Middle East, which positions itself as a global hub for data centers and digital changes.
Also, the plan incorporates incentives such as tax breaks and duty exceptions to attract significant direct investment of alien from global Bitcoin miners and Ai firmsCare of high-tech work growth and strengthening the local digital economy.
As part of the initiative, Pakistan plans to create a government -held “Strategic Bitcoin Reserve“Or” national Bitcoin wallet“To accumulate Mined Bitcoin as a lasting Sovereign owner, which has signed a commitment to incorporating digital assets into the framework of economic stability.
Do you know? In April 2018, the State Bank of Pakistan (SBP) released a circular ban on financial institutions to deal with cryptocurrencies, which stopped trading through traditional banking channels. Therefore, new policies, show an amazing U-turn.
Bitcoin mining challenges in Pakistan
Despite the promise of bitcoin mining potential, Pakistan faces a powerful battle in the establishment of a sustainable and stable mining industry.
Maintenance and reliability of the grid
Relying on older, poor coal plants for Continue mining The concerns of maintenance and reliability.
Pakistan’s fragile grid, with inconsistencies and high delivery losses, increases the risk of maintaining incessant power for mining operations.
IMF investigation and financial stability
The IMF has expressed significant concerns and demanded urgent clarification on Pakistan’s energy allocation, which has been awarded the Fent Found Facility (EFF) conversation.
Fears exist that the initiative can complicate budget talks and energy subsidies may oppose bailout conditions.
Energy security and public welfare
A critical risk is the potential to change power from households and industries. Despite the assurances, if mining exacerbates existing power deficiencies or drives consumer tariffs, it can lead to public disturbance and ruin the noted economic benefits.
Regulation of ambiguity
Despite the establishment of the PCC and PDAA, the legal and regulation clarity for cryptocurrency in Pakistan remains unclear.
The absence of a federal law creates a “regulatory color -colored zone,” which potentially prevents foreign investors and exposes participants to legal and compliance risks.
Bitcoin mining in Pakistan: What’s next?
Phase 1 of Pakistan’s Bitcoin Mining Initiative, launched in 2025, provides 2,000 MW for mining and AI data centers.
Future phases are set to combine renewable sources of energy (solar, wind, hydropower), which sign a long-term move towards sustainable energy for these operations.
One major factor is the IMF approved. Due to Pakistan’s ongoing loan and the IMF’s care about Sovereign Bitcoin adoptionConsultation and clarification on the provision of energy and subsidies are critical. The outcome of these discussions will significantly influence the implementation of the plan.
Ultimately, success will give the hinge to attract the global Bitcoin miners and AI operators. While the initial interest was reported, the actual expansion of the allocated megawatts was the real test.
Global players will monitor Pakistan’s ability to offer stable, competitive electricity and navigate complex regulations, with real foreign investment and operational facilities that serve as major indicators.
