Can Pakistan Realistically Power Bitcoin Mining with 2,000 Megawatts of Electricity?
Pakistan has made a major move under its broader digital strategy to monetize surplus electricity, attract foreign investment, and create high-tech jobs. This bold step has reignited discussions around whether the country could emerge as a global hub for cryptocurrency mining.
Although Pakistan currently lacks a formal legal framework for cryptocurrency, the announcement is being viewed as a significant effort to integrate digital assets into the national economy. Finance Minister Muhammad Aurangzeb described the move as a milestone in Pakistan’s digital roadmap, aimed at leveraging the country’s geographical and economic position to become a digital bridge between Asia, the Middle East, and Europe.
Attention is now focused on Bitcoin mining, an energy-intensive process that relies on powerful computer systems to generate digital currency. With the global Bitcoin network consuming over 187 terawatt-hours (TWh) of electricity each year, the Pakistani government sees an opportunity to utilize its idle power generation capacity for digital innovation.
This initiative aligns with broader national goals that include developing renewable energy-powered data centers, promoting fintech hubs, and expanding local artificial intelligence infrastructure to reduce dependency on foreign systems and enhance data sovereignty.
However, energy pricing remains a significant obstacle. For Bitcoin mining to be viable, electricity must be priced around 4–5 cents per unit. In Pakistan, electricity—mainly produced using imported coal—often costs nearly double that when transmission and distribution charges are included, making mining economically challenging.
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In addition, agreements with international lenders like the IMF prohibit subsidized electricity for specific industries, including crypto mining. Preferential rates for miners could lead to demands for similar treatment across other industrial sectors.
Despite having a total generation capacity of 45,000 MW—almost twice the national peak load—Pakistan continues to face frequent power outages. Experts argue that the real issue lies in affordability and inefficient distribution, not production.
Pakistan’s legal environment also presents a hurdle. Cryptocurrencies currently lack formal recognition, and the State Bank of Pakistan does not support their use. This regulatory uncertainty could discourage investment and raise legal concerns.
Global examples offer cautionary tales. In Kazakhstan, a surge in crypto mining caused a 7% spike in national power consumption, triggering government crackdowns. Meanwhile, in the U.S., Bitcoin mining now consumes about 2.3% of the country’s electricity, raising alarms over environmental and grid stability impacts.
With increasing interest from global crypto firms, Pakistan’s success will depend on its ability to resolve key issues, particularly electricity pricing, regulatory clarity, and infrastructure readiness.
