Pakistan Plans to Utilise Excess Electricity for Bitcoin Mining and AI Data Centres Following CZ's Appointment as Strategic Advisor

Pakistan’s Strategic Move to Turn Energy Surplus into Bitcoin Mining Power

Amid mounting energy challenges, Pakistan is exploring an unconventional solution to utilise its surplus electricity for Bitcoin mining.

With the energy grid grappling with overproduction and rising costs, the country is looking to capitalise on excess power by redirecting it to Bitcoin mining operations and AI data centres.

Leveraging Surplus Energy for Economic Growth

Pakistan has long faced difficulties in managing its energy supply.

High electricity tariffs, coupled with a growing reliance on alternative energy sources such as solar, have led to a surplus of power.

As demand from industrial users declines, largely due to consumers switching to solar, the government is considering ways to monetise this excess generation.

Bilal Bin Saqib, advisor to the Ministry of Finance and a member of the country’s Cryptocurrency Council, noted that “several provinces already display consistent oversupply patterns,” making them ideal for localized Bitcoin mining operations.

The government’s plan is to strategically allocate the surplus energy to facilities that can handle it, such as cryptocurrency mining hubs and data centres focused on artificial intelligence.

The location of these facilities will be determined based on the regional availability of excess electricity, ensuring that the energy grid is not strained.

Changpeng Zhao Appointed to Guide Pakistan’s Crypto Future

Recently, Binance founder Changpeng Zhao, also known as CZ, has been appointed as a strategic advisor to Pakistan’s Cryptocurrency Council.

Zhao, a leading figure in the global crypto space, will lend his expertise in blockchain infrastructure and regulatory frameworks.

His advisory role aims to guide the development of the country’s digital assets ecosystem.

With Zhao's involvement, Pakistan is clearly committed to strengthening its position in the crypto sector.

According to Saqib, Pakistan currently has between 15 to 20 million cryptocurrency users, despite the lack of clear regulatory frameworks.

As part of his advisory role, Zhao will help establish regulatory sandboxes, offering fintech startups and digital asset companies the chance to test new innovations in a controlled environment.

This approach is intended to foster growth in the sector while the regulatory landscape evolves.

Energy Overcapacity and the Promise of AI and Crypto Centres

Pakistan’s energy sector has faced significant volatility in recent years, with overcapacity issues and high electricity tariffs creating a mismatch between supply and demand.

The increasing adoption of solar panels by residential consumers has further complicated national energy forecasts.

To address these challenges, the government has sought to diversify its use of surplus energy, including deploying it to power AI data centres alongside Bitcoin mining operations.

Saqib explained that these data centres, which require constant power to run high-density compute workloads, would align well with the availability of surplus electricity.

The aim is to ensure that excess power does not go to waste, but instead fuels technological infrastructure that can support Pakistan’s growth in digital services.

Discussions with mining firms are ongoing to determine the specific requirements for infrastructure, energy purchase agreements, and compliance protocols.

Final decisions on locations and partners are expected to be made once evaluations on regional energy availability and new technical standards are completed.

Building a Blockchain-Driven Economy for the Future

Pakistan’s push for blockchain adoption comes amid a broader trend across the globe, where countries with energy surpluses are increasingly using Bitcoin mining to absorb unused electricity.

The country’s Crypto Council, led by Saqib, is focused on attracting international investment to transform Pakistan into a leader in blockchain-powered finance.

In a previous interview, Saqib expressed that the council’s goal is to ensure Pakistan does not remain on the sidelines of the global digital asset revolution.

He said,

“We want Pakistan as the leader of blockchain-powered finance.”

This ambition to foster blockchain innovation is also tied to the country’s growing freelance economy.

With Pakistan ranking as the third-largest freelance market worldwide, the government is working to create opportunities for its tech-savvy youth by offering upskilling programs in blockchain engineering, AI modelling, and decentralized finance (DeFi).

A National Digital Transition Underway

The strategic focus on energy management, digital infrastructure, and regulatory innovation is poised to position Pakistan as a competitive player in the global digital economy.

As the country explores ways to leverage its energy surplus, the involvement of industry experts like Changpeng Zhao reflects Pakistan’s intention to rapidly develop its blockchain and cryptocurrency landscape.

With continued emphasis on regulatory development and youth-focused educational initiatives, Pakistan aims to reshape its technological and financial future.