Pakistan’s recent announcement to allocate 2,000 megawatts of electricity for Bitcoin mining and Artificial Intelligence (AI) data centers is raising serious concerns among financial and technology experts, who argue that the plan lacks regulatory oversight, transparency, and practical viability.

Critics point out that the move is being implemented without any formal recognition of cryptocurrencies by the State Bank of Pakistan (SBP). Currently, SBP has not accepted Bitcoin or any other virtual asset as legal tender, nor has it issued guidelines for financial activities related to mining or trading digital assets. Without a clear legal framework, the government’s push appears premature, if not reckless.

The much-anticipated Pakistan Digital Assets Authority Bill, which is expected to define regulatory norms for digital currencies, remains absent from the legislative table. Until this bill is passed and enforced, any initiatives around cryptocurrency lack institutional legitimacy and accountability.

The formation of the Pakistan Crypto Council (PCC), while promising in theory, has so far failed to provide a defined legal or operational structure. Experts warn that Bitcoin mining is a speculative and capital-intensive activity, often yielding diminishing returns due to high infrastructure costs, rapid hardware depreciation, and volatile market conditions.

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Countries with similar energy surpluses have attempted large-scale mining in the past—only to retreat when profitability declined. Notable failures include Kazakhstan, Iran, and parts of the United States, where falling crypto prices led to closed operations and abandoned infrastructure. Without a strategic exit plan, Pakistan risks repeating these mistakes.

Additionally, there are fundamental concerns regarding governance:

• Who is in charge of executing and regulating these mining operations?

• What metrics are being used to assess financial viability?

• What will happen if Bitcoin prices fall below sustainable mining thresholds?

• Who will finance the necessary infrastructure and ensure environmental safeguards?

Experts argue that allocating 2,000 MW of electricity—especially in a country already facing energy challenges—requires thorough opportunity cost analysis. Is this the best use of national resources? Have alternative high-yield tech investments been evaluated?

Furthermore, critics claim that much of the language used in official statements about this initiative mirrors outdated narratives from previous crypto bull runs. It reflects a limited understanding of the current digital asset ecosystem, which has evolved beyond mining to focus on decentralized finance (DeFi), blockchain infrastructure, developer tooling, and real-world applications.

The only positive development so far, according to observers, is the appointment of Binance founder Changpeng Zhao as an advisor to the Pakistan Crypto Council. However, without proper legislation, policy frameworks, and SBP endorsement, even high-profile affiliations are unlikely to yield tangible outcomes.

To move forward meaningfully, the government must answer several critical questions:

• What is the legal status of cryptocurrencies in Pakistan?

• Has SBP formally approved any mining-related activities?

• When will the Digital Assets Authority Bill be introduced and what will it regulate?

• Who are the international partners or firms involved in this venture?

• What are the projected returns and risks?

Pakistan’s aspiration to become a digital economy leader is commendable. But unless foundational issues of regulation, governance, and economic logic are addressed, the entire crypto and AI data center initiative could collapse under the weight of poor planning and unrealistic expectations.