Pakistan plans to use its surplus energy for Bitcoin mining to boost the country’s digital economy and attract investment.
Pakistan is facing a potential transformation in its economic and energy landscape by seeking to harness surplus electricity for Bitcoin mining. This initiative could bring significant investment to the country’s digital economy while optimizing the use of unused energy. The establishment of a council dedicated to this topic marks an important step, especially given the country’s previous reluctance toward cryptocurrencies due to security and regulatory concerns.
The central concept is simple: Pakistan often has surplus electricity that goes unused and causes financial losses. Bitcoin mining, an energy-intensive process, could convert this unused energy into a productive use. Bilal Bin Saqib, CEO of the newly established council, presented this idea as a way to transform Pakistan’s energy liabilities into assets. Bitcoin mining consumes enormous amounts of electricity worldwide, and Pakistan’s low electricity costs could make it an attractive location for miners.
Finance Minister Muhammad Aurangzeb emphasized the strategic importance of this initiative for Pakistan’s digital transformation. He stated that the country strives to create a transparent and future-oriented financial ecosystem that attracts investment and empowers youth. At the same time, he emphasized the need to learn from global best practices and develop business models that are appropriate to local conditions.
A crucial factor for the success of this initiative is regulatory clarity. Council members emphasized the importance of consumer protection, licensing regimes, and a national blockchain policy. They also emphasized the need for a phased rollout and pilot programs to fulfill international obligations. Countries such as China and Iran have pursued different approaches that could serve as learning examples for Pakistan.
Pakistan’s Power Division is in discussions with various stakeholders to create attractive electricity tariffs for crypto mining. The goal is to offer electricity at marginal prices by utilizing surplus capacity without subsidies. Foreign mining companies have already expressed interest in this method.
Pakistan’s strategy of using surplus energy for Bitcoin mining is a risky, high-stakes venture. To succeed, the country must establish a clear and supportive regulatory framework, ensure a stable and reliable power supply, and comply with international regulations. If successful, Pakistan could convert its energy liabilities into assets, attract foreign investment, and take a leading role in the emerging digital economy.
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