Pakistan’s 2,000 MW Electricity Allocation for Crypto Mining: What It Means and Why It’s Controversial

Dec, 1 2025

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Electricity Rate ($/kWh)

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Pakistan Context

Pakistan has allocated 2,000 MW (2,000,000 kW) of electricity for crypto mining at $0.08/kWh. At current rates, this could generate up to 17,000 Bitcoin annually, worth about $1.8 billion.

Comparison: This rate is half of what miners pay in Texas and a third of what they pay in Germany.

Results

Your Potential Mining Output

Annual Electricity Cost $525,600

Estimated Annual Bitcoin +0.7 BTC

Estimated Revenue $42,000,000

How Pakistan Compares

Pakistan Rate $0.08/kWh

US (Texas) $0.16/kWh

Germany $0.24/kWh

Global Average $0.12/kWh

Note: These calculations are simplified for educational purposes. Actual mining depends on hardware efficiency, network difficulty, and other factors.

Pakistan's allocation of 2,000 MW could generate up to 17,000 BTC annually ($1.8 billion) at current prices.

Pakistan just gave 2,000 megawatts of electricity to crypto mining - and no one agrees if it’s genius or reckless

In May 2025, Pakistan announced it would redirect 2,000 MW of surplus power to Bitcoin mining and AI data centers. That’s enough electricity to power a medium-sized country. It’s also the largest government-backed crypto mining project ever launched. The move stunned global observers. Some called it a bold economic lifeline. Others warned it could sink Pakistan’s already fragile energy system.

The numbers don’t lie. Pakistan has 7,000 MW of unused electricity sitting idle - mostly from coal plants running at just 15% capacity. Meanwhile, households and businesses pay some of the highest electricity rates in South Asia. The government’s solution? Let crypto miners use the waste power. For $0.08 per kWh, miners get rates cheaper than most of the world. That’s half what miners pay in Texas and a third of what they pay in Germany.

At that rate, the 2,000 MW allocation could generate up to 17,000 Bitcoin a year. At today’s prices, that’s roughly $1.8 billion in annual value. For a country drowning in $2.8 trillion rupees of losses from underused power plants, it’s tempting. The Pakistan Crypto Council, formed in March 2025 under Finance Minister Muhammad Aurangzeb, is pushing this as Phase 1 of a digital economy revolution.

Why Pakistan? Surplus power, not cheap energy

This isn’t about cheap coal or solar. It’s about waste.

Most countries that mine Bitcoin - like the U.S., Kazakhstan, or Russia - fight over electricity. They compete with homes, factories, and hospitals. Pakistan doesn’t. It has more power than it can use. The problem isn’t generation. It’s distribution, corruption, and mismanagement. Coal plants built for 5,000 MW are running at 750 MW. Hydro stations sit half-empty during monsoon season. The grid is broken, but the power is there.

By locking 2,000 MW into mining, Pakistan isn’t adding new demand - it’s putting idle capacity to work. Think of it like renting out empty warehouse space. The electricity would’ve been lost anyway. Now, it’s being sold to tech companies that need massive, stable power.

That’s why the initiative isn’t just about Bitcoin. It’s also about AI data centers. These facilities need constant, reliable electricity. They’re not like home miners with a few rigs. These are warehouses full of servers running 24/7. And Pakistan is betting it can become a regional hub for them.

Who’s running this? The Pakistan Crypto Council

The Pakistan Crypto Council (PCC) is the government’s new face for crypto. It’s not a private company. It’s a state-backed body reporting directly to the Ministry of Finance. Its leadership includes top officials and international names - including Changpeng Zhao, co-founder of Binance, who was appointed as a strategic adviser in April 2025.

The PCC’s job is to cut through red tape. They’re negotiating with power companies like WAPDA and private grid operators like PTCL and Multinet. They’re also drafting Pakistan’s first-ever legal framework for digital assets, which was unveiled in April 2025. That’s huge. Before this, crypto was a gray area. Now, it’s regulated - even if controversially.

The council has set up three mining zones: Lahore, Karachi, and Islamabad. Twenty-two existing data centers are already licensed to operate. The University of Turbat even built a 1MW solar-powered data center in June 2023 - a test case for renewable-powered mining.

Government officials in a council chamber with Bitcoin charts and global mining zones.

The IMF says no - and they’re not backing down

Not everyone is celebrating. The International Monetary Fund (IMF) is pushing back hard. They’ve held multiple technical meetings with Pakistani officials since June 2025. Their concern? Subsidies.

The IMF argues that giving crypto miners electricity at $0.08/kWh while regular consumers pay $0.18-$0.25/kWh is unfair. It creates a two-tier system. The IMF has seen this before. In the past, similar subsidies for fertilizer, fuel, or industry failed to create jobs or growth - they just fueled corruption and debt.

Dr. Fakhray Alam Irfan, Secretary of Power, admitted the IMF questioned how Pakistan plans to phase out these subsidies. “We’ve done this before,” he said. “It didn’t work.”

But Pakistan isn’t backing down. Officials say the subsidy is temporary - only for the first 18 months to attract investors. After that, rates will shift to market levels. The problem? No one knows what market level means in a country where power prices are politically controlled, not economically set.

Meanwhile, the IMF hasn’t blocked the plan. They’re still talking. That’s unusual. Usually, the IMF says “no” and walks away. Here, they’re staying at the table. Why? Because Pakistan’s economy is collapsing. They need foreign cash. Crypto mining could bring it.

Will it actually work? The real risks

There’s a big difference between announcing a plan and making it work.

First, the grid. Pakistan’s electricity network is unstable. Blackouts happen daily. Mining rigs don’t care about brownouts. They need steady power. One spike or drop can fry thousands of machines. That’s not just expensive - it’s a waste of energy.

Second, the money. $1.8 billion in Bitcoin value sounds great. But most of that won’t stay in Pakistan. Miners will pay for hardware in China, software in the U.S., and cloud services in Europe. Profits will go to foreign shareholders. Local jobs? Maybe 5,000-10,000 tech roles. Not enough to move the needle on unemployment.

Third, reputation. Pakistan is still on the FATF grey list for anti-money laundering risks. If crypto miners use the system to launder money, the country could face global financial isolation. The PCC says they’re building KYC and AML systems. But no one’s seen them yet.

And then there’s the environment. Critics say using coal power for mining is a greenwash. But Pakistan’s coal plants are already running. If they’re not mining, they’re just burning coal for nothing. Some experts argue this could be the cleanest use of that power yet.

Solar data center in desert at dawn, engineer checking tablet as storm gathers.

What’s next? Phase 2 and beyond

The real test comes in 2026. If Phase 1 runs smoothly - if miners don’t crash the grid, if foreign companies show up, if the IMF doesn’t cut funding - Pakistan may expand to 5,000 MW or more.

There are already whispers of a national Bitcoin reserve. At the Bitcoin 2025 conference, Pakistan unveiled its first government-held Bitcoin wallet. It’s not a lot - maybe 500 BTC - but it’s symbolic. This isn’t just mining. It’s adoption.

Other countries are watching. Nigeria has surplus gas. Indonesia has idle geothermal plants. Egypt has solar potential. If Pakistan succeeds, they’ll copy it. If it fails, they’ll avoid it.

The world’s biggest crypto mining hubs used to be China, then the U.S. Now, the new frontier is countries with surplus power and desperate economies. Pakistan is betting everything on that bet.

What this means for you

If you’re a miner: Pakistan offers the cheapest electricity in the world - if you can get in. But don’t expect hand-holding. You’ll need legal counsel, local partners, and backup generators.

If you’re an investor: This is high-risk, high-reward. The regulatory environment is still forming. The IMF could change its mind. But if this works, early players could see 10x returns.

If you’re a Pakistani citizen: This isn’t about your electricity bill. It’s about whether your country can turn waste into wealth. The success of this project will define Pakistan’s digital future - for better or worse.

Is crypto mining legal in Pakistan?

Yes. In April 2025, Pakistan launched its first official policy framework for digital assets, making cryptocurrency mining, trading, and holding fully legal under regulated conditions. The Pakistan Crypto Council oversees compliance and licensing.

How much electricity does crypto mining use in Pakistan?

The government has allocated exactly 2,000 megawatts (MW) for Bitcoin mining and AI data centers. This represents about 28.5% of Pakistan’s total 7,000 MW surplus electricity capacity. No other sectors are receiving this level of dedicated power.

Why is the IMF against this plan?

The IMF opposes the subsidized electricity rate of $0.08/kWh for miners, arguing it unfairly advantages crypto companies over regular consumers and businesses. They fear it sets a precedent for untargeted subsidies that historically failed to create sustainable growth in Pakistan.

Can regular people in Pakistan mine Bitcoin too?

Technically yes, but not at the same rate. The 2,000 MW allocation is reserved for large-scale, licensed operators - not individuals. Home miners must buy electricity at market rates, which are higher and less reliable. The government is not encouraging small-scale mining.

What happens if the power grid crashes because of mining?

The Pakistan Crypto Council requires all mining operators to install grid-stabilizing equipment and backup power systems. Any facility causing instability can be shut down immediately. So far, no major disruptions have been reported, but experts warn the system is untested at this scale.

Is Pakistan becoming a Bitcoin nation?

Not yet. But the government has created a Bitcoin reserve and is building legal infrastructure to support digital assets. This is a strategic move to attract foreign tech investment, not a full shift to cryptocurrency as currency. Bitcoin is being treated as an asset class, not money.

19 Comments

Joe B.
December 1, 2025 AT 19:29

Okay but let’s be real - this is the most genius move Pakistan has made since the invention of chai. 2,000 MW of idle coal power? That’s like finding a forgotten $100 bill in last year’s jeans. Miners get dirt-cheap juice, Pakistan gets hard currency, and the grid? Still broken but now with a revenue stream. The IMF is screaming ‘subsidy!’ like it’s 2008. Newsflash: the subsidy is temporary, targeted, and *actually productive*. Unlike fertilizer subsidies that just line the pockets of politicians. This isn’t welfare - it’s capitalism with a power plug. 🚀💰
Rod Filoteo
December 3, 2025 AT 12:33

this is a trap. the imf knows it. china owns all the mining rigs. usa owns all the software. pakistan just gets the dirty coal smoke and a few tech jobs. they’re not building a nation - they’re building a server farm for foreigners. and when the bitcoin price drops? poof. all the rigs go dark. and the grid? still dead. but now the coal plants are even more corroded from running nonstop. this is how countries become digital colonies. 🤡⚡
Layla Hu
December 4, 2025 AT 10:23

I appreciate the ambition, but I’m genuinely worried about the human cost. Families paying $0.25/kWh while miners get $0.08… it’s hard to justify, even if the power was going to waste. I hope they’re building real safeguards - not just legal frameworks.
Nelia Mcquiston
December 6, 2025 AT 03:28

What if we stop framing this as ‘crypto vs. citizens’ and start seeing it as ‘waste vs. opportunity’? Pakistan isn’t stealing from the poor - it’s using what was already thrown away. The real issue isn’t the rate, it’s the lack of universal access. If this revenue funds grid upgrades, then it’s not a subsidy - it’s an investment. The IMF wants clean books. But sometimes, you have to dirty your hands to build something new. Maybe this is the messy, imperfect path to modernization - not the textbook one.
Ivanna Faith
December 6, 2025 AT 14:30

The fact that you’re even debating this shows how little you understand economic sovereignty. Pakistan isn’t begging for crumbs - it’s carving out a new global node. $0.08/kWh? That’s not a subsidy - it’s a strategic pricing model to capture market share in the global digital infrastructure race. The IMF still thinks in terms of 1980s aid models. This is 2025. The new currency isn’t dollars - it’s compute. And Pakistan just minted its first billion in compute. 💅
Akash Kumar Yadav
December 7, 2025 AT 06:18

Pakistan is doing what India refuses to do - take bold action. While our politicians argue over cricket matches, Pakistan is turning coal waste into crypto gold. This is not theft - this is genius. The IMF? They’ve been wrong about every developing country since 1990. Let them cry. We in South Asia know: when your country is drowning, you don’t wait for permission to swim. Pakistan is not just mining Bitcoin - it’s mining dignity. 🇵🇰🔥
samuel goodge
December 8, 2025 AT 11:53

I find this fascinating - and deeply complex. The power is surplus, yes - but the grid instability remains a critical vulnerability. Mining rigs require ultra-stable power; even a 0.1s dip can destroy ASICs. The PCC’s requirement for backup systems is prudent, but is it enforceable? And what happens when the 18-month subsidy ends? Will rates adjust to true marginal cost, or will political pressure keep them artificially low? The real test isn’t the first 1,000 BTC - it’s the sustainability of the entire ecosystem.
alex bolduin
December 9, 2025 AT 01:40

Honestly I think this could work if they keep it simple - no overcomplicating with bureaucracy. Just let the miners run, take the cash, and use it to fix the damn grid. If the power’s going to waste anyway, why not make it useful? I’m not saying it’s perfect but it’s way better than just letting the coal plants sit there smoking for nothing. Also Changpeng Zhao’s involvement? That’s not just a name drop - that’s legit credibility. People will trust this more now.
Vidyut Arcot
December 9, 2025 AT 19:48

This is the kind of innovation Pakistan needs - bold, practical, and forward-thinking. Yes, there are risks, but every great leap starts with uncertainty. Instead of fearing failure, let’s support the execution. Let’s make sure local engineers get trained, local tech startups get access, and the profits circulate within the economy. This isn’t just mining - it’s nation-building with code. Keep going, Pakistan. We’re rooting for you. 💪
Jay Weldy
December 10, 2025 AT 15:10

I love how this isn’t just about money - it’s about reimagining what a developing country can be. Instead of begging for aid, they’re creating a new export: energy efficiency. Imagine if other countries with wasted power followed suit? This could spark a global shift in how we think about infrastructure. Maybe the future isn’t about producing more energy - it’s about using what we already have. And Pakistan? They’re leading the way. 🌍✨
Melinda Kiss
December 10, 2025 AT 15:54

I just want to say - I’m so proud of how Pakistan is handling this. It’s not easy to make a decision like this when you’re under so much pressure. The fact that they’re working with the IMF instead of ignoring them shows maturity. And the idea of using waste power? That’s brilliant. I hope they keep the human side in mind - training locals, protecting consumers, and making sure this doesn’t become another extractive model. You’ve got this. ❤️
Christy Whitaker
December 12, 2025 AT 05:26

Of course they’re doing this. Everyone knows the government is just laundering money through ‘mining.’ The ‘2,000 MW’ is a lie - it’s probably 500 MW and the rest is phantom rigs. And don’t tell me about ‘surplus power’ - the grid crashes every other day. This is just a front for capital flight. They’ll take the crypto, sell it offshore, and leave the country with fried transformers and a bigger debt. Classic.
Nancy Sunshine
December 14, 2025 AT 00:57

The strategic utilization of stranded energy assets represents a paradigmatic shift in energy economics. By leveraging underutilized thermal generation capacity to facilitate high-density computational workloads, Pakistan is effectively monetizing negative externalities. This constitutes a novel form of energy arbitrage, wherein latent infrastructural inefficiencies are transformed into capital-generating assets. The IMF’s resistance stems from its adherence to neoclassical subsidy paradigms, which fail to account for emergent digital infrastructure value chains. This is not fiscal irresponsibility - it is adaptive governance.
Alan Brandon Rivera León
December 15, 2025 AT 20:04

I’m from Latin America - we’ve seen this movie before. Countries get excited about ‘tech solutions’ to fix broken systems, but the real fix is always in the basics: clean water, roads, schools. This feels like putting a Ferrari engine in a bicycle. It’s flashy, but the frame’s still rusted. I hope they’re investing the crypto profits into the grid - otherwise, this is just a beautiful distraction.
Ann Ellsworth
December 17, 2025 AT 18:46

The real elephant in the room? The PCC’s ‘KYC/AML systems’ are vaporware. Zero transparency. No audits. No public dashboards. They’re banking on the fact that no one will check - because who cares about compliance in a country with 30% inflation? This isn’t innovation - it’s regulatory arbitrage dressed up as economic strategy. And let’s not forget: Bitcoin mining is 99% useless computation. We’re trading planetary energy for speculative ledger entries. This isn’t progress - it’s performance art for VCs.
Sharmishtha Sohoni
December 17, 2025 AT 21:14

Surplus power. Cheap rates. Global demand. Why not? The grid might be bad, but at least now there’s money to fix it. Let’s see how it plays out.
Althea Gwen
December 18, 2025 AT 03:35

so like… is this the new colonialism? we’re just outsourcing our electricity waste to the global south and calling it ‘innovation.’ 🙄
Steve Savage
December 18, 2025 AT 18:37

I’ve been watching this play out. The real win isn’t the $1.8B in Bitcoin - it’s the fact that Pakistan is finally treating tech like infrastructure, not a fad. The University of Turbat’s solar miner? That’s the future right there. If they scale that, they could become the first country to run crypto on 100% renewable waste. That’s not just smart - it’s revolutionary.
Andrew Brady
December 20, 2025 AT 14:03

This is a direct attack on Western financial dominance. The U.S. and IMF don’t want developing nations to build their own digital economies. They want us dependent on their banks, their chips, their software. Pakistan is flipping the script. This isn’t mining Bitcoin - it’s mining sovereignty. The fact that Binance’s CZ is involved? That’s not a coincidence. This is a geopolitical play. And we’re all just watching.