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

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.

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.

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.