From Cointelegraph
June 12, 2025 5:20 am:

Pakistan’s power paradox sees 14% of installed capacity idle, contributing to soaring capacity payments of 2.1 trillion PKR annually, burdening consumers. Fossil fuels dominate despite renewables’ growth, with solar capacity surging to nearly 4.9 GW. High electricity rates fuel solar rush, creating grid instability and unequal access.

Pakistan plans to redirect 2,000 MW of idle power to Bitcoin mining and AI data centers to monetize off-peak electricity, ease grid strain, and generate revenue. Critics warn of increased fossil fuel reliance and environmental concerns. IMF concerns focus on diverting power amid blackouts, while government highlights revenue and job creation.

Pakistan’s pivot to Bitcoin mining aims to transform underutilized thermal plants into revenue streams through concrete operational steps and digital frameworks. Challenges include high electricity pricing, sustainability concerns of repurposing old coal plants, and grid infrastructure upgrades. Incentives like tax breaks attract foreign investment in mining and AI operations.

Pakistan’s Bitcoin mining initiative aims to convert surplus electricity into revenue through Bitcoin mining and AI centers, positioning the country as a digital hub. Incentives attract foreign investment, boost high-tech job growth, and integrate digital assets into the economy. Regulatory ambiguity and IMF scrutiny pose challenges to long-term sustainability.

Phase 1 of Pakistan’s Bitcoin mining plan allocates 2,000 MW for mining and AI centers, with future phases integrating renewable energy sources. IMF approval and regulatory clarity are crucial for success, attracting global miners and operators. The outcome depends on stable electricity supply, regulatory navigation, and real foreign investment.

Read more at Cointelegraph: Can Bitcoin fix Pakistan’s energy problem? The 2,000 megawatt mining strategy explained