Pakistan Turns to Bitcoin Mining to Solve $7.4 Billion Energy CrisisPakistan is considering a new approach to deal with its long-standing energy crisis by introducing Bitcoin mining powered by unused electricity. The government has proposed a strategy to redirect up to 2,000 megawatts (MW) of surplus energy to crypto mining and AI data centers, turning financial losses into potential gains. 

This marks a major shift in how the country looks at energy and digital assets. Pakistan’s troubling financial state resembles its urgency to take Bitcoin seriously and to resolve its decade-long energy issues as well. The country currently has an installed electricity capacity of 46,600 MW, but nearly 14% of this remains idle for much of the year. During low-demand winter months, consumption can drop to just 12,000 MW. Despite not being used, many of these plants continue receiving capacity payments, which are fixed fees paid whether electricity is generated or not. Moreover, these payments have now reached around $7.4 billion a year, heavily burdening the national budget and increasing electricity costs for citizens.

Pakistan has also seen a boom in solar energy. In 2024 alone, net-metered solar capacity surged from 1.3 GW to nearly 4.9 GW, driven by an influx of over 17 GW of low-cost Chinese solar panels. While solar energy is a cleaner alternative, it has brought new issues like grid instability and uneven cost distribution. Non-solar users now pay higher rates, and poorer households struggle to access affordable energy solutions.

To address this growing imbalance, the government has floated the idea of using idle power for Bitcoin mining. The proposal suggests that crypto mining could absorb excess electricity during off-peak times, reduce pressure on the grid, and generate digital revenue. This could help offset the huge losses from capacity payments and offer a new income stream for the state