Pakistan plans to use surplus electricity for Bitcoin mining

Pakistan is exploring Bitcoin (CRYPTO:BTC) mining and blockchain data centers to utilize its surplus electricity and address economic challenges.

The government is in discussions with multiple mining firms to establish special electricity tariffs that encourage the use of excess power without relying on subsidies.

This initiative aims to reduce capacity payments made to power producers for unused energy while fostering growth in the cryptocurrency and blockchain sectors.

Bilal Bin Saqib, head of the Pakistan Crypto Council, emphasized the potential of this approach, stating that it could stabilize the power sector and generate income from idle resources.

Finance Minister Muhammad Aurangzeb highlighted the importance of creating a transparent and future-ready financial ecosystem to attract investment.

The plan aligns with Pakistan’s broader efforts to position itself as a regional crypto hub following its legalization of cryptocurrency as legal tender in November 2024.

The government is also working on regulatory frameworks to ensure compliance with international standards while safeguarding consumer interests.

Bitcoin mining, known for its high energy consumption, presents an opportunity for Pakistan to monetize its surplus electricity.

Globally, miners spend 60–70% of their earnings on electricity, making Pakistan’s abundant energy resources an attractive prospect for the industry.

With pilot programs and phased rollouts planned, Pakistan aims to integrate digital assets into its economy while addressing local energy challenges.

At the time of reporting, the Bitcoin price was $80,958.55.