Pakistan bets on Bitcoin! 2000 MW of electricity for mining to build strategic reserves

The Chairman of the Pakistan Virtual Assets Regulatory Authority (PVARA), Bilal B. Sakiib, stated at the Abu Dhabi Bitcoin Middle East and North Africa Conference that Pakistan considers Bitcoin and digital assets as the new financial backbone for its 240 million citizens. In May, Pakistan announced the establishment of a Bitcoin strategic reserve and allocated 2000 MW of surplus electricity to mining and AI data centers. In September, PVARA issued licensing invitation letters to global cryptocurrency companies.

From a Complete Ban to a Strategic Embrace: A Major Policy Shift

Pakistan’s attitude towards Bitcoin has undergone a dramatic transformation. In 2018, the Pakistan Central Bank imposed a comprehensive ban on financial institutions handling cryptocurrency transactions, viewing them as tools for money laundering and capital flight. However, this ban failed to stop grassroots adoption. Pakistanis continued active trading through P2P platforms and overseas exchanges, making the country one of the largest unregulated cryptocurrency markets worldwide.

The policy reversal in 2025 is driven by severe economic realities. Pakistan faces multiple crises such as dwindling foreign exchange reserves, high inflation, and rising unemployment, making traditional economic models unsustainable. Minister Sakiib stated that Pakistan can no longer rely on conventional economic methods and needs “a new engine.” At the Abu Dhabi roundtable, he emphasized: “We believe Bitcoin, digital assets, and blockchain are not just speculation but infrastructure. They are not noise but the foundation for building new financial trajectories for countries in the Global South.”

This stance is highly radical, elevating Bitcoin from a speculative tool to a national financial infrastructure. Sakiib’s mission is to transform one of the world’s largest unregulated crypto markets into a compliant, investment-friendly ecosystem. He believes Pakistan’s young population—70% under 30—is capable of establishing a regulated cryptocurrency ecosystem at scale.

“If El Salvador, with only 6 million people, can do it, then Pakistan’s population is 40 times larger, and with one of Asia’s fastest-growing digital forces, what can they do?” This comparison with El Salvador is very persuasive. El Salvador became the first country to adopt Bitcoin as legal tender in 2021, despite challenges, and set a precedent for other developing nations. With a population of 240 million, Pakistan’s potential impact if Bitcoin adoption succeeds would far surpass that of El Salvador.

Harnessing 2000 MW Power and Strategic Reserves

Pakistan’s Bitcoin strategy rests on two pillars. In May, Sakiib announced the country’s preparations to establish a Bitcoin strategic reserve, making Pakistan the third country after El Salvador and the Central African Republic to establish a national Bitcoin reserve. The specific size and timeline of the reserve have not been announced, but the declaration itself carries significant symbolic weight.

In the same month, Pakistan allocated 2000 MW of surplus electricity to Bitcoin mining and AI data centers as part of its national digital transformation plan. 2000 MW is an enormous power capacity—equivalent to about 2 million households’ electricity needs. Officials stated that the plan aims to attract foreign investment and support new high-tech jobs by utilizing surplus power for AI and cryptocurrency infrastructure.

This strategy is highly clever. Pakistan’s power infrastructure has expanded significantly over the past decade, but economic growth has lagged, resulting in large amounts of idle capacity. Using this excess power for Bitcoin mining can generate revenue for power companies, attract international miners to invest in facilities, and help accumulate Bitcoin reserves for the country. Compared to El Salvador’s direct purchase of Bitcoin with government funds, Pakistan’s “mining for reserves” model involves less fiscal burden.

Pakistan’s Three Major Strategic Advantages in Cryptocurrency

Demographic Dividend: 240 million people with 70% under 30, high acceptance among the youth

Power Advantage: 2000 MW surplus power provides cost competitiveness for mining, attracting international miners

Grassroots Adoption: Already one of the largest unregulated markets; legalization can bring underground economy into regulation and taxation

In September, Pakistan invited global crypto companies to apply for licenses under its new federal regulatory framework. PVARA issued notices of intent to major exchanges and service providers interested in entering the market. This marks the transition from conceptual regulation to implementation. If international CEX exchanges obtain licenses in Pakistan, they will access a huge market of 240 million potential users.

Grassroots Power Behind the World’s Third Largest Adoption Rate

(Source: Chainalysis)

Pakistan has become one of the fastest-growing cryptocurrency markets globally. In the Chainalysis 2025 Global Cryptocurrency Adoption Index, it rose 6 positions to rank third, behind India and Nigeria. This leap indicates that Pakistan’s crypto adoption is driven not by top-down government initiatives, but by genuine grassroots demand.

The main motivations for Pakistanis using cryptocurrencies include hedging against local currency depreciation (PKR continues to weaken), circumventing capital controls (strict government restrictions on forex transactions), receiving remittances from abroad (high fees and slow processes through traditional channels), and participating in the global digital economy (freelancers accepting crypto payments). These practical needs have fueled explosive grassroots adoption.

However, unregulated rapid growth also brings problems. Fraud, lack of investor protection, and tax revenue loss have prompted the government to reconsider policies. Rather than banning an already widespread market, it is better to regulate and benefit from it. This pragmatic attitude is the fundamental driver behind Pakistan’s policy shift.

Sakiib emphasized that 70% of the population is under 30, constituting a huge demographic dividend. The younger generation’s higher acceptance of digital technologies and cryptocurrencies provides an ideal social foundation for Pakistan to build a crypto economy. Compared to developed countries facing aging populations and resistance from traditional financial vested interests, Pakistan’s young demographic makes leapfrog financial development more feasible.

These statements indicate that Pakistan is working to transform grassroots crypto activity into a compliant, innovation-driven industry based on Bitcoin and digital asset regulation. If successful, Pakistan could become a model for developing countries legalizing cryptocurrencies, proving that Bitcoin is not just a speculative tool for wealthy nations but also a strategic instrument for financial inclusion and economic leapfrogging.