Pakistan plans to use its surplus electricity for Bitcoin mining in an effort to expand digital economic activity and increase foreign exchange earnings, officials say.
The country’s total power generation capacity stands at 46,000 megawatts, significantly exceeding demand. In summer, power consumption reaches 26,000 megawatts, while in winter it falls to just 10,000 megawatts.
Due to seasonal variations in electricity usage, the government aims to divert excess capacity to Bitcoin mining. Under the plan, 2,000 megawatts of electricity will be allocated for this purpose.
Officials say the initiative will provide a source of income without relying on imports and will help boost foreign reserves.
The government, in collaboration with the private sector, will develop Bitcoin mining as part of its broader “Digital Pakistan” strategy.
Authorities say the move will generate state revenue and create job opportunities for youth through the establishment of modern data centres.
Better utilisation of Independent Power Producers’ (IPPs) capacity will also support the stability of the national power grid, according to the plan.
Read: Pakistan’s crypto bet: digital dream or power misstep?
Previously, government announced to allocate 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and AI data centres, finance ministry said.
The allocation is part of government’s plans to use its surplus electricity to bitcoin mining and AI data centres.
Country’s energy sector is grappling with challenges, including high electricity tariffs and surplus generation capacity.
The rapid expansion of solar energy has further complicated the landscape, as more consumers turn to alternative energy sources to mitigate high costs.
The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body, which is part of a broader strategy to monetize surplus electricity, create high-tech jobs, and attract foreign investment, the ministry said.
The allocation is the first phase of a broader, multi-stage digital infrastructure roll-out, it added.
Read more on The Express Tribune
