- Pakistan plans to use surplus energy for Bitcoin mining and AI data centers.
- Changpeng Zhao advises Pakistan on blockchain and regulatory development.
- Pakistan aims to boost blockchain and AI skills for job creation and tech exports.
The government of Pakistan seeks to improve energy sector performance by redirecting unused electrical output into Bitcoin mining operations and artificial intelligence (AI) data facilities. According to a report by Reuters, Bilal Bin Saqib, who serves as head of the Pakistan Crypto Council and adviser to the finance ministry, has engaged with multiple mining companies to examine this initiative. An initiative aims to utilize surplus electric power through productive applications, including Changpeng Zhao, the founder of Binance, and other major stakeholders.
Energy Sector Challenges and Surplus Generation
Pakistan’s energy sector meets challenges, including high electricity taxes and overcapacity. These problems have been heightened by the increasing number of consumers adopting solar energy to mitigate rising energy costs. With energy supply surpassing demand in certain regions, the country is looking to convert the overload into economically viable activities. The energy sector’s current state has pushed for new ways to utilize this surplus power.
Plans to deploy this energy for Bitcoin mining and AI operations are part of a broader strategy to address the sector’s inefficiencies. Saqib stated that the location of Bitcoin mining centers will depend on the regional availability of surplus electricity. Specific regions that consistently generate excess energy will be chosen for these operations. By doing so, the government hopes to reduce the strain on the national grid while fostering a profitable industry.
In addition to Bitcoin mining, AI data centers are also being considered as part of this strategy. These centers require continuous high-density computing and can operate efficiently with available surplus power. The government is in ongoing discussions with industry players to finalize infrastructure details, energy agreements, and compliance measures. The Pakistan Crypto Council has established Changpeng Zhao as their strategic adviser to provide guidance and support. Zhao currently leads Binance.
The strategic advisory position of Zhao involves guidance of blockchain infrastructure and regulatory frameworks and support of digital currency along with mining development initiatives. Zhao’s advisory role extends to helping establish regulatory sandboxes for fintech and blockchain-related ventures. These sandboxes will offer a controlled environment for innovation while the government refines policies surrounding these emerging technologies.
Expanding Blockchain Education and Innovation
Pakistan hosts between 15 to 20 million cryptocurrency users making it rank third globally for freelancing activities. The absence of established rules benefits the blockchain industry alongside fintech since it enables their optimal development in Pakistan. The government plans to improve blockchain knowledge and AI expertise among young people to establish Pakistan as a major talent center in emerging technology.
The educational initiatives will emphasize blockchain engineering, decentralized finance (DeFi), and AI modeling. By promoting these skills, the country hopes to drive job creation, enhance exports, and tap into the global digital services market.
Reliability assessments of regional energy supply capacity currently guide the final decisions regarding mining center and AI data facility placements. The upcoming tasks require infrastructure planning, energy purchase contract creation, and compliance verification with the updated technical rules. Resolving these technical specifications will enable the project to advance while promoting energy efficiency and technological growth in Pakistan.
