Pakistan’s 2,000 MW Electricity Allocation for Crypto Mining: What It Means and Why It Matters
Pakistan just gave 2,000 megawatts of electricity to crypto mining - and no one saw it coming
Most countries try to cut energy use for Bitcoin mining. Pakistan did the opposite. In May 2025, the government announced it would dedicate 2,000 megawatts (MW) of surplus power - enough to light up a small country - to Bitcoin mining and AI data centers. This isn’t a pilot. It’s a national strategy. And it’s already changing how the world thinks about energy waste.
Here’s the problem Pakistan solved: they have 7,000 MW of unused electricity sitting idle. Coal plants, built at great cost, run at just 15% capacity. Meanwhile, households and businesses pay some of the highest electricity rates in South Asia. The math didn’t add up. So they flipped the script: instead of shutting down plants, they’re turning them into Bitcoin factories.
How much Bitcoin can 2,000 MW actually mine?
Let’s break it down. At 2,000 MW, Pakistan’s allocation is the largest single government-backed crypto mining project ever launched. According to mining analyst Daniel Batten, this setup could produce around 17,000 Bitcoin per year. At today’s prices, that’s roughly $1.8 billion in value.
But it’s not just about Bitcoin. The same power will run AI data centers - a growing sector that needs steady, cheap electricity. Unlike residential mining rigs, these are industrial-scale operations: warehouses full of ASIC miners and server racks running 24/7. The goal? Turn idle power into digital assets and tech jobs.
Electricity cost is the key. Pakistan is offering miners 23-24 Pakistani rupees per kWh - about $0.08. That’s half the average rate in Texas and a third of what miners pay in Germany. Even compared to Kazakhstan and Russia - where mining thrives on cheap power - Pakistan’s rate is a steal. In most places, electricity is the biggest cost. In Pakistan, it’s now the biggest advantage.
Why now? And why Pakistan?
This isn’t random. Pakistan’s economy has been stuck. Inflation is high, foreign reserves are low, and billions in power infrastructure sit unused. The annual cost of keeping those coal plants running without output? 2.8 trillion Pakistani rupees - over $10 billion. That’s money burning in the dark.
Crypto mining changes that. It turns waste into revenue. The government estimates this initiative could generate $500 million annually just from mining fees and taxes. That’s not chump change. It’s enough to fund schools, hospitals, or solar upgrades.
Geography helps too. Pakistan sits between Asia, Europe, and the Middle East. Data from here can reach Dubai, Istanbul, and Delhi in under 50 milliseconds. That low latency makes it ideal for AI and blockchain services that need fast connections. It’s not just about power - it’s about being the next digital hub.
The IMF is worried. Here’s why
Not everyone is cheering. The International Monetary Fund (IMF) is pushing back. Their main concern? Subsidies. They argue that giving miners $0.08/kWh while regular consumers pay $0.15+ is unfair. They’ve asked: “How will you phase this out? What happens when Bitcoin’s price drops?”
The IMF has a point. Past subsidies in Pakistan - for fuel, fertilizer, electricity - often became permanent, drained budgets, and hurt public services. But here’s the difference: this subsidy isn’t for people. It’s for a tech export. Every dollar earned from mining goes into foreign reserves. It’s not a handout. It’s a trade.
Both sides are still talking. Pakistan says the deal is flexible. The IMF says they’re “engaging as plans develop.” No final agreement yet. But the project moved forward anyway. Phase 1 is live. The first mining farms are being built in Lahore and Karachi.
Who’s actually running this?
The Pakistan Crypto Council (PCC), formed in March 2025, is the driver. It’s not a private company. It’s a government body under the Finance Ministry, led by Special Assistant to the Prime Minister Bilal Bin Saqib. They’re working with Binance co-founder Changpeng Zhao as a strategic adviser - a huge signal that global crypto players are watching.
Local telecom giants like PTCL, Multinet, and Cybernet are already operating 22 data centers across the country. They’re the ones building the infrastructure. The University of Turbat even launched a 1MW solar-powered data center in 2023 - a hint that renewables are part of the long-term plan.
And then there’s the policy. In April 2025, Pakistan introduced its first-ever legal framework for crypto businesses. No more gray zones. Now, companies can register, pay taxes, and operate legally. That’s huge. Most countries still ban or ignore crypto. Pakistan is building a legal pipeline.
What’s the real risk?
People worry about grid overload. Can Pakistan’s power system handle 2,000 MW of constant, high-load mining? The answer is yes - if managed right. The government isn’t pulling power from homes. They’re using surplus that’s already there. The real danger is mismanagement: if miners don’t pay, if the grid isn’t monitored, if corruption creeps in.
Another risk? Volatility. If Bitcoin crashes, mining becomes unprofitable. But Pakistan isn’t betting everything on Bitcoin. They’re also betting on AI. Data centers don’t care if Bitcoin’s price drops. They still need power. And AI is growing fast - faster than crypto.
Then there’s FATF. Pakistan is still on the Financial Action Task Force’s grey list for anti-money laundering risks. They need to prove crypto isn’t being used for crime. That’s why the PCC is working with regulators to build KYC and transaction tracking into every mining operation. No anonymity. No loopholes.
What’s next? Phase 2, and beyond
Phase 1 is 2,000 MW. Phase 2? Could be 5,000 MW. The government hasn’t said yes yet, but they’ve hinted at it. If this works - if revenue flows, if jobs are created, if the IMF stays quiet - they’ll scale up.
They’re also building a national Bitcoin reserve. At the Bitcoin 2025 conference, Pakistan unveiled its first government-held Bitcoin. Not for speculation. For stability. Think of it like a gold reserve, but digital. It’s a statement: this isn’t a fad. It’s national policy.
Other countries are watching. Nigeria? Egypt? Indonesia? All have surplus power and economic pressure. If Pakistan pulls this off, it won’t be the last. It could be the blueprint.
Is this sustainable?
Sustainability isn’t just about power sources - it’s about economics. Right now, Pakistan’s model works because:
- They’re using waste energy
- They’re creating export revenue
- They’re attracting tech investment
- They’re building legal infrastructure
Long-term, they’ll need to shift to solar and wind. That’s already happening. The 1MW solar project in Turbat is just the start. The goal isn’t to keep coal plants running forever. It’s to use them as a bridge - until renewables can take over.
And here’s the quiet win: jobs. Thousands of engineers, technicians, and IT staff are being hired. Not in Silicon Valley. In Peshawar, Faisalabad, Quetta. This isn’t just about mining. It’s about building a tech economy from scratch.
What this means for the rest of the world
The old model of crypto mining was: find cheap power, run rigs, cash out. It was chaotic. It was dirty. It was often illegal.
Pakistan is showing a new model: government-led, regulated, integrated with national energy strategy. It’s not perfect. But it’s real. And it’s working.
If you thought crypto mining was only for Texas ranchers or Siberian warehouses, think again. The future of mining might be in Karachi. And it might be the only way some countries can escape economic stagnation.
Is Pakistan’s 2,000 MW crypto mining plan legal?
Yes. In April 2025, Pakistan launched its first official cryptocurrency policy, making mining and digital asset operations legal under regulated conditions. The Pakistan Crypto Council oversees compliance, and all operations must follow KYC and anti-money laundering rules set by the State Bank and FATF.
How much electricity does one Bitcoin miner use?
A single high-end ASIC miner uses about 3,000 watts (3 kW) continuously. To mine one Bitcoin per year, you need roughly 2,500-3,000 kWh of electricity. Pakistan’s 2,000 MW allocation can support hundreds of thousands of such miners - enough to produce up to 17,000 BTC annually.
Why is Pakistan’s electricity rate so low for miners?
It’s not a gift - it’s a business deal. Pakistan has 7,000 MW of surplus power that’s otherwise wasted. Charging miners $0.08/kWh turns idle assets into foreign currency. The government expects to earn $500 million a year from this. That money helps pay for schools, roads, and renewable energy projects.
Is the IMF blocking the project?
No. The IMF has raised concerns about subsidy fairness and long-term fiscal impact, but they haven’t blocked the plan. Both sides are still negotiating. Pakistan has moved forward with Phase 1 while continuing talks. The IMF’s role is advisory, not veto power.
Can Pakistan’s grid handle 2,000 MW of constant mining load?
Yes - because it’s using surplus capacity, not drawing from homes or businesses. The 2,000 MW was already available. The challenge isn’t capacity - it’s monitoring and managing demand to prevent grid instability. The PCC is working with power engineers to install smart meters and load-balancing systems.
Will this lead to more renewable energy in Pakistan?
Indirectly, yes. The revenue from mining is being reinvested into grid upgrades and solar projects. The Turbat solar data center is just one example. As mining grows, so does the incentive to build cleaner, more reliable power - because miners need stable electricity, not blackouts.
