Pakistan, often known for its rich history and cultural heritage, is now making headlines in the world of cryptocurrency. The nation is exploring innovative ways to harness its surplus electricity by venturing into Bitcoin mining and artificial intelligence (AI) data centers. This strategic move aims to boost the economy, create jobs, and position Pakistan as a key player in the global tech arena.
Harnessing Surplus Energy: From Wasted Watts to Digital Assets
Pakistan’s energy sector has long grappled with the challenge of surplus electricity. High tariffs and overcapacity have led to a situation where much of the generated power goes unused. Bilal Bin Saqib, the head of the Pakistan Crypto Council and adviser to the finance minister, sees this as an opportunity.
He suggests that by allocating this excess energy to Bitcoin mining and AI data centers, Pakistan can transform a potential liability into a lucrative asset. “We’re looking at ways to monetize our surplus power,” Saqib remarked.
Strategic Collaborations: Binance’s CZ Joins the Advisory Board
To navigate the complex world of cryptocurrency, Pakistan has enlisted the expertise of Changpeng Zhao, commonly known as CZ, the founder of Binance—the world’s largest cryptocurrency exchange.
In April 2025, Zhao was appointed as a strategic adviser to the Pakistan Crypto Council. His role includes guiding blockchain infrastructure development, advising on regulatory frameworks, and supporting national initiatives like digital currency adoption and youth education in blockchain and AI technologies.
“Pakistan is opening its doors to the future of finance,” Zhao stated, expressing enthusiasm about the nation’s digital prospects.
Regulatory Framework: Crafting Policies for a Digital Future
Despite the absence of formal regulation, Pakistan ranks among the top 10 global crypto adopters, boasting 15–20 million users. This vibrant community has spurred the government to develop a regulatory framework that fosters innovation while ensuring compliance with international standards.
Introducing regulatory sandboxes is one such initiative, providing a controlled environment to test crypto solutions safely. Saqib emphasizes that upskilling the youth in blockchain and AI can drive job creation, boost exports through digital services, and position Pakistan as a hub for emerging tech talent.
Why Cryptocurrency? Why Now?
Though the world is still warming up to the idea of cryptocurrencies, Pakistan is already placing itself among the leaders in crypto adoption. In fact, Pakistan ranks among the top 10 countries globally for cryptocurrency adoption, with an estimated 15-20 million users.
The country also boasts the third-largest freelance economy in the world. The scene is ripe for innovation, especially as the global demand for crypto continues to grow.
With the rise in solar energy adoption and the strain on Pakistan’s traditional power infrastructure, tapping into unused electricity for cryptocurrency mining makes perfect sense.
But there’s more to it than just mining Bitcoin. The country is also eyeing artificial intelligence (AI) data centers, another tech-heavy area that requires significant computing power and benefits from inexpensive, surplus energy.
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FAQs:
Why is Pakistan focusing on Bitcoin mining with surplus electricity?
Pakistan has surplus electricity due to overcapacity in its energy sector. By using this extra power for Bitcoin mining and AI data centers, the country can generate income, encourage innovation, and create new job opportunities in the digital economy.
What role is Changpeng Zhao (CZ) playing in Pakistan’s crypto strategy?
CZ, the founder of Binance, has joined Pakistan’s Crypto Council as a strategic advisor. His role includes providing expertise on blockchain infrastructure, advising on crypto regulations, and supporting initiatives like digital currency adoption and blockchain education.
What is a regulatory sandbox, and why is it important for Pakistan?
A regulatory sandbox is a controlled environment where new crypto solutions and technologies can be tested safely. Pakistan aims to use sandboxes to experiment with digital solutions while ensuring they align with global regulatory standards, which will foster innovation and secure growth in the crypto sector.
How many crypto users are there in Pakistan?
Pakistan ranks among the top 10 global crypto adopters, with an estimated 15-20 million users, making it a significant player in the cryptocurrency space.
How can upskilling Pakistan’s youth help the economy?
By teaching blockchain and AI technologies, Pakistan can create a skilled workforce that can drive innovation, boost digital exports, and establish the country as a hub for tech talent, contributing to economic growth.
Glossary of Key Terms:
Bitcoin Mining: The process of verifying transactions and adding them to the blockchain, typically involving high-powered computers that consume significant electricity.
Cryptocurrency: A digital or virtual currency that uses cryptography for security. Bitcoin is the most well-known example.
Blockchain: A decentralized digital ledger used to record transactions across multiple computers. It underpins cryptocurrencies like Bitcoin.
AI Data Centers: Facilities that house servers and other technology needed for artificial intelligence operations. These centers require significant computing power and are integral to tech development.
Regulatory Sandbox: A testing environment where new technologies or business models can be trialed under a regulator’s supervision. It allows businesses to innovate without facing the full extent of regulatory consequences initially.
Changpeng Zhao (CZ): The founder and CEO of Binance, one of the largest cryptocurrency exchanges in the world. He is also an influential figure in the crypto industry.
Surplus Electricity: Excess electrical power that is generated but not consumed, which in this case, is being considered for use in Bitcoin mining and AI infrastructure.
Fintech: Short for financial technology, fintech refers to innovative technologies used to improve or automate financial services. Cryptocurrency is one example of fintech.