🇵🇰 Pakistan Turns Idle Power Into Bitcoin Mining Gold

Pakistan is facing a paradox in its energy sector: despite an installed capacity of 46,600 MW, nearly 14% of that power sits idle, especially in winter months when demand plummets. This underuse is costly, consumers still foot the bill for dormant plants through capacity payments, which have ballooned to over $7b annually. Much of this comes from aging thermal plants, which remain on standby and collect fees even when not generating electricity.

Meanwhile, Pakistan’s aggressive adoption of solar energy has led to grid instability and rising tariffs for those without access to net-metered systems. With businesses paying around $0.16/kWh and poorer households left behind, the current energy model is both expensive and unequal.

To address this, the government launched a bold new strategy in May 2025: repurpose up to 2,000 MW of idle electricity for Bitcoin mining and AI data centers. Championed by Bilal Bin Saqib and the newly formed Pakistan Crypto Council (PCC), the plan aims to monetize wasted energy, ease grid pressure, and attract foreign investment. Initial interest surged after Bin Saqib pitched the idea at Bitcoin 2025 in Las Vegas, positioning Pakistan as a global mining hotspot.

The proposal includes transforming underutilized coal plants, such as Sahiwal and Port Qasim, into mining hubs, offering duty exemptions on ASIC hardware, and establishing a national Bitcoin wallet to hold sovereign digital reserves. A dedicated Pakistan Digital Asset Authority (PDAA) will oversee regulation, taxation, and AML compliance.

However, the plan faces challenges. Electricity at commercial rates ($0.22/kWh) is too costly for competitive mining, prompting proposals for subsidized rates of $0.09/kWh—likely to face pushback from the IMF amid bailout negotiations. There are also concerns about sustainability, as relying on inefficient coal plants raises environmental alarms, and any perceived diversion of electricity from the public could trigger unrest.

Phase 1 of the strategy is already underway, with future phases planned to integrate renewables into the mining energy mix. But the initiative’s success hinges on key factors: IMF approval, regulatory clarity, grid upgrades, and whether promised investments actually materialize. For now, Pakistan is betting on Bitcoin to turn an energy liability into a digital opportunity, but only time will tell if this gamble pays off.

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