In a bold move to position itself as a global hub for digital finance, Pakistan announced an ambitious plan to allocate 2,000 megawatts (MW) of electricity for block reward mining and artificial intelligence (AI) data centers. This initiative, revealed at the BTC Vegas 2025 conference on May 29, reflects the country’s desire to leverage its energy resources for economic growth.
Spearheaded by Bilal Bin Saqib, the CEO of the newly formed Pakistan Crypto Council, the initiative aims to attract crypto miners and tech companies by utilizing surplus energy from underused facilities. However, the announcement has drawn sharp scrutiny from the International Monetary Fund (IMF), which questions the sustainability and legality of the plan amid ongoing negotiations. This tension underscores a broader conflict between Pakistan’s aspirations in the crypto space and its challenging economic realities, positioning the nation as a test case for balancing innovation with stability.
During the BTC Vegas 2025 event, attended by notable figures like U.S. Vice President JD Vance and Eric Trump, Pakistan showcased its determination to pioneer decentralized finance (DeFi) among developing nations. The country plans to repurpose three underutilized coal-powered plants, which currently operate at only 15% capacity, to support Bitcoin mining and AI operations. Saqib argued that this initiative represents a strategic approach to transforming Pakistan’s energy surplus into a competitive advantage.
Moreover, the government has introduced a national Bitcoin wallet to manage seized digital assets, envisioned as a “sovereign reserve.” This move signifies a long-term investment in cryptocurrency without burdening taxpayers, inspired by the U.S.’s proposals of a Bitcoin reserve. The plan aims to fund the reserve through miner fees and global contributions, making it politically attractive amid fiscal scrutiny.
At the heart of this initiative lies Pakistan’s energy paradox: an abundance of generation capacity coexisting with high electricity costs and frequent outages. The local industrial electricity rates range from Rs. 38.80 to Rs. 40.26 per kWh (approximately $0.14–$0.15), significantly steeper than rates in established mining hubs like Texas, where they can plummet to $0.012 per kWh during off-peak times. To attract miners, Pakistan proposes subsidized rates around $0.09 per kWh, akin to rates for export industries. However, this subsidy system has raised concerns among economists regarding the preferential treatment given to crypto miners over struggling households and industries, which often pay about $0.22 per kWh.
With electricity prices having surged by 55% since 2021, the potential social repercussions of this plan could be severe, particularly in urban areas like Karachi and Lahore, which frequently experience power outages exceeding 12 hours daily. Critics argue that the allocation of 2,000 MW for mining could worsen this situation and further destabilize the economy, thereby clashing with commitments made under Pakistan’s IMF bailout program.
The IMF’s immediate response was a call for “urgent clarification” from the Finance Ministry regarding the plan’s legality and its potential implications for Pakistan’s energy infrastructure. As the country remains reliant on a $2.1 billion bailout, the IMF stresses the need for fiscal discipline and sustainable resource management. The Fund’s concerns focus on Bitcoin mining’s high electricity demands, especially as global BTC mining is estimated to consume around 138 terawatt-hours annually.
Moreover, Pakistan’s current regulatory framework complicates this initiative, as digital currencies are illegal for domestic use, creating a mismatch in the government’s global promotional efforts. The Financial Action Task Force (FATF) has also placed Pakistan on its grey list over concerns related to money laundering risks, heightening the complexity of these crypto ambitions. Without a coherent regulatory strategy, there are fears that uncoordinated crypto policies could undermine Pakistan’s broader financial reforms.
Still, the push for a digital financial future is not without potential benefits. Pakistan’s youthful and technologically adept population, with over 40 million digital asset wallets and a median age of just 23, provides a fertile ground for innovation. The integration of low labor costs and underutilized renewable energy resources (currently making up only 7% of its energy mix) could position Pakistan as a significant player in the crypto mining arena, assuming improvements are made in infrastructure. During BTC Vegas 2025, Saqib emphasized that this initiative could bolster economic growth by creating tech jobs and attracting foreign investments.
Despite these optimistic projections, challenges abound. To ensure that this high-risk strategy doesn’t result in a diplomatic and economic “power outage,” Pakistan must effectively tackle issues concerning energy reliability, regulatory clarity, and the overarching concerns raised by the IMF. The success or failure of this initiative will not only define Pakistan’s immediate economic prospects but also set a precedent for other developing nations considering similar paths in the realm of cryptocurrency and blockchain technology.
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