Latest news with #PakistanCryptoCouncil
Coin Geek
4 days ago
- Business
- Coin Geek
High-stakes gamble: Pakistan's mining plan faces IMF scrutiny
Getting your Trinity Audio player ready... In a bold move to position itself as a global hub for digital finance, Pakistan announced an ambitious plan to allocate 2,000 megawatts (MW) of electricity for block reward mining and artificial intelligence (AI) data centers, unveiled at the BTC Vegas 2025 conference on May 29. Spearheaded by Bilal Bin Saqib, CEO of the newly formed Pakistan Crypto Council and Special Assistant to the Prime Minister for Crypto and Blockchain, the initiative aims to leverage surplus energy to attract crypto miners, blockchain companies, and AI firms. However, the plan has drawn sharp scrutiny from the International Monetary Fund (IMF), which is questioning its legality, sustainability, and impact on Pakistan's strained energy grid amid ongoing financial negotiations. This clash highlights the tension between Pakistan's crypto ambitions and economic realities, making it a critical test case for balancing innovation with stability. The announcement, made in Las Vegas and attended by high-profile figures like United States Vice President JD Vance and President Donald Trump's son, Eric, positions Pakistan as a pioneer among developing nations embracing decentralized finance (DeFi). The plan involves repurposing three underutilized coal-powered plants, operating at just 15% capacity, to power Bitcoin mining and AI operations. Saqib framed the initiative as a strategic use of PakPakistan'sergy surplus, which stems from heavy infrastructure investments and reduced industrial activity. The government also introduced a national Bitcoin wallet to hold seized digital assets as a 'sovereign reserve,' signaling long-term confidence in crypto without using taxpayer funds. This 'no taxpayer-funds' model, inspired by the U.S.'s proposed Bitcoin reserve, aims to collect miner fees and global donations to build the reserve, making it politically palatable amid fiscal scrutiny. Pakistan's energy paradox—excess generation capacity paired with high electricity prices and frequent outages—lies at the heart of the initiative. The country's industrial electricity rates, ranging from Rs. 38.80 to Rs. 40.26 per kWh (about $0.14–$0.15), are significantly higher than those in mining hubs like Texas, where rates can drop to $0.012 per kWh during off-peak hours. To make the plan viable, Pakistan is offering subsidized rates of around $0.09 per kWh for miners, aligning with rates for export industries. This subsidy, however, has sparked criticism from economists who question why crypto miners receive preferential treatment over households and industries paying up to $0.22 per kWh. With 55% electricity price hikes since 2021 fueling social unrest, the move risks exacerbating public discontent in cities like Karachi and Lahore, where outages often exceed 12 hours daily. The IMF's response has been swift and pointed. On June 1, the Fund demanded 'urgent clarification' from Pakistan's Finance Ministry, scheduling a dedicated virtual meeting to address the plan's legality and energy implications. Pakistan, reliant on a $2.1 billion IMF bailout package, faces tough negotiations as the IMF emphasizes fiscal discipline and sustainable resource management. The Fund's concerns center on the strain BTC mining could place on Pakistan's grid, given its energy-intensive nature—global BTC mining consumes an estimated 138 terawatt-hours annually. Critics, including the IMF, argue that diverting 2,000 MW to mining could worsen outages, undermine economic stability, and conflict with Pakistan's commitments under its IMF program. Experts like Daniel Batten, cited on X, counter that mining can monetize excess renewable energy, as seen in Bhutan and El Salvador. However, Pakistan's reliance on coal plants undercuts this argument. Pakistan's 'crypto' push also faces regulatory hurdles. Digital currency remains illegal for domestic use under current laws, contradicting the government's global pitch for 'crypto' investment. The Financial Action Task Force (FATF), which has repeatedly placed Pakistan on its grey list for money laundering risks, adds further complexity. The IMF's scrutiny reflects fears that uncoordinated crypto policies could destabilize Pakistan's financial reforms, especially without a clear regulatory framework. Saqib's vision of Pakistan as a 'digital bridge' between Asia, Europe, and the Middle East hinges on attracting international capital, but high energy costs and fragile infrastructure—described as a 'delicate balancing act' by analysts—threaten its feasibility. Despite these challenges, the plan has potential upsides. Pakistan's young, tech-savvy population, with over 40 million digital asset wallets and an average age of 23, offers a strong foundation for digital innovation. Low labor costs and untapped renewable energy potential (currently only 7% of the power mix) could make Pakistan a future mining hub if infrastructure improves. The initiative could also drive economic growth by creating tech jobs and attracting foreign investment, as Saqib emphasized at BTC Vegas 2025. However, without addressing energy reliability, regulatory clarity, and IMF concerns, Pakistan risks a diplomatic and economic 'power outage.' As Pakistan navigates this high-stakes gamble, the outcome will reverberate globally. Success could inspire other developing nations to embrace crypto mining, while failure could reinforce the IMF's cautionary stance on digital assets. For now, Pakistan's bold vision hangs in the balance, caught between innovation and economic reality. Watch: Bitcoin mining in 2025: Is it still worth it? title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Express Tribune
6 days ago
- Business
- Express Tribune
From mining real gold to digital gold
Listen to article In March 2022, Pakistan made headlines when Mark Bristow signed a landmark agreement to launch the country's largest-ever copper and gold mining projecta symbol of traditional resource extraction. Three years later, in March 2025, a new frontier emerged with the formation of the Pakistan Crypto Council (PCC), aiming to mine a different kind of gold: digital. From proposals to use idle electricity for crypto mining to controversial links allegedly aimed at attracting US President Donald Trump's attention, Pakistan's crypto ambitions have taken on a complex and politically charged tone. Currently, cryptocurrencies are banned in Pakistan, as confirmed by officials from the State Bank of Pakistan (SBP) and the Ministry of Finance during a recent National Assembly Standing Committee on Finance meeting. The SBP, in multiple statements, has reiterated that trading, holding, or promoting cryptocurrencies violates domestic law. Citing concerns over capital flight, money laundering, and terrorist financing, the SBP has warned financial institutions against engaging in crypto-related activities. In early 2025, the finance ministry echoed these concerns, calling crypto ventures "misaligned with national economic goals." This has created internal contradictions, as other government bodies appear to be exploring crypto integration through unofficial channels. Until there is regulatory claritypreferably through legislation or a policy frameworkPakistan remains a high-risk jurisdiction for any legitimate crypto activity. The Pakistan Crypto Council (PCC) emerged in early 2025 as a private initiative with lofty ambitions. Branded as an innovation-driven entity, the PCC has signed non-binding agreements with international partners to promote blockchain use in Pakistan. However, many of these agreements and the entities involved have been criticised in both mainstream and social media for lacking transparency. A major event triggering scrutiny was the visit of Binance founder Changpeng Zhao (CZ) to Pakistan. Convicted in the US in November 2023 for violating anti-money laundering laws, CZ's company also paid a record $4.3 billion penalty. His visit, reportedly facilitated by PCC intermediaries, was viewed by analysts as tone-deaf and damaging to Pakistan's international image. Adding a geopolitical dimension is PCC's recent Letter of Intent with World Liberty Financial (WLF), a US-based crypto company in which the Trump family reportedly holds a 60% stake. The agreement proposes collaboration on blockchain, stablecoin, and decentralised finance projects in Pakistan. Critics argue that the move is less about technology and more about political manoeuvringan effort to curry favour with Donald Trump. The involvement of Steve Witkoff, a Trump ally now serving as a US special envoy, has further fuelled speculation of backdoor diplomacy disguised as financial innovation. Pakistan has over 10,000 MW of excess power generation capacity due to over-commitment in generation contracts and under-utilised industrial demand. But this surplus comes at a steep cost. Electricity remains expensive10 to 15 cents per kWh for industrial usersmaking it non-viable for crypto mining, which thrives on rates below 5 cents per kWh in places like Venezuela, Kazakhstan, and Ethiopia. While crypto mining could monetise some of this idle capacity, alternative uses offer better long-term value. Industrial and Special Economic Zones (SEZs) can justify higher tariffs through job creation and exports. Green hydrogen targets premium markets, while data centres and IT parks generate high income per energy unit. Cold storage facilities for agriculture are crucial for exports and reducing food waste. EV infrastructure can help lower fuel imports while promoting sustainability. If the government is considering subsidised energy for crypto mining to attract global miners, then why not do the same for these sectors? These alternatives maximise economic utility by pairing energy use with employment, export potential, and long-term gains. In contrast, crypto is volatile and speculative, potentially locking Pakistan into low-return ventures while sidelining more transformative opportunities. Amid rising interest in cryptocurrency, Pakistan's consideration of Bitcoin as a strategic reserve is fraught with significant risk. While countries like El Salvador have recently profited from such investments, Pakistan's volatile economy, regulatory vacuum, and legal bans make this approach dangerous. The IMF has already raised concerns over subsidised power tariffs. Meanwhile, any move to build Bitcoin reservesespecially from confiscated assetscould provoke renewed scrutiny from the FATF, jeopardising Pakistan's progress in exiting the grey list. With limited reserves and a fragile economy, adopting crypto as a reserve asset may seem reckless. Instead, Pakistan must focus on financial stability and regulatory clarity, rather than speculative digital ventures. Ultimately, the question isn't whether Pakistan can enter the crypto economy, but whether it shouldand to what extent. In the absence of clear regulation, public consensus, and a sound economic rationale, the pursuit of crypto mining may cost more than it offers. As the world moves toward regulated, sustainable digital finance, Pakistan must decide whether chasing crypto-mining under uncertain pretences is worth the price of strategic credibility. THE WRITER IS A FINANCIAL MARKET ENTHUSIAST AND IS ASSOCIATED WITH PAKISTAN'S STOCKS, COMMODITIES AND EMERGING TECHNOLOGY
Express Tribune
6 days ago
- Business
- Express Tribune
PCC holds talks with Bitcoin advocate Saylor on digital currency adoption
This handout image released by the Pakistan Crypto Council (PCC) on June 15, 2025, shows a screengrab of a virtual meeting between Finance Minister Muhammad Aurangzeb (top left), US Bitcoin advocate and billionaire Michael Saylor (top right), and Minister of State for Crypto and Blockchain Bilal Bin Saqib (bottom). Photo: PCC Listen to article Pakistani officials held discussions this week with US billionaire and Bitcoin advocate Michael Saylor on the potential use of digital currencies to strengthen Pakistan's financial resilience and digital economy, according to a statement released on Sunday. The talks were held between Saylor and Finance Minister Muhammad Aurangzeb, alongside Minister of State for Crypto and Blockchain Bilal Bin Saqib. The meeting reportedly focused on the possible inclusion of Bitcoin in Pakistan's sovereign reserves and its role in future monetary policy. The discussions come as Pakistan steps up its efforts to regulate digital assets. 'Pakistan aspires to lead the Global South in the development and adoption of digital assets, setting a benchmark for innovation, regulation and inclusive growth,' Aurangzeb, who also chairs the PCC, was quoted as saying. Read More: Crypto currencies use is illegal, NA panel told Saylor, one of the most prominent corporate investors in Bitcoin, welcomed Pakistan's initiative and praised what he termed the country's 'clarity and commitment' toward fostering a forward-looking digital economy. 'Bitcoin is the strongest asset for long-term national resilience,' he said, according to the statement. He added that emerging markets such as Pakistan stand to benefit from early adoption of blockchain-based finance. Saylor also expressed his willingness to provide advisory support as Pakistan moves forward with its digital asset agenda. Saylor's company, Strategy (formerly MicroStrategy), is the largest corporate holder of Bitcoin globally, with over 582,000 BTC reportedly worth more than $62 billion. The firm's market capitalisation has risen significantly since adopting Bitcoin as a treasury asset in 2020. Also Read: Pakistan launches first govt-backed strategic Bitcoin reserve Officials indicated that further consultations with global stakeholders are planned as Pakistan continues to develop a comprehensive digital financial ecosystem under the oversight of newly formed regulatory bodies. In March, the government formed the Pakistan Crypto Council (PCC) to formulate a legal framework for cryptocurrency trading and attract foreign investment. A month later, it introduced the country's first policy for virtual assets, aligning it with global anti-money laundering and financial transparency standards set by the Financial Action Task Force (FATF). In May, the federal cabinet approved the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA) — a specialised body to regulate blockchain-based infrastructure. Around the same time, Pakistan also announced the creation of its first government-backed strategic Bitcoin reserve, unveiled at the Bitcoin 2025 conference in Las Vegas.
Coin Geek
11-06-2025
- Business
- Coin Geek
Pakistan's bold leap into Bitcoin mining to harness surplus energy
Getting your Trinity Audio player ready... In a groundbreaking announcement at the BTC 2025 conference in Las Vegas, Pakistan unveiled an ambitious plan to allocate 2,000 megawatts (MW) of surplus electricity to fuel Bitcoin mining and artificial intelligence (AI) data centers, marking a significant pivot toward digital finance and technological innovation. This strategic initiative, spearheaded by the Pakistan Crypto Council (PCC) and championed by Finance Minister Muhammad Aurangzeb and Special Assistant to the Prime Minister on Blockchain and Crypto Bilal Bin Saqib, positions Pakistan as a potential global hub for digital currency and high-tech industries. By leveraging its excess energy capacity, the country aims to transform a long-standing economic liability into a revenue-generating opportunity while navigating complex domestic and international challenges. Pakistan's energy sector has long grappled with a paradox: despite significant investments in power infrastructure, the country faces high electricity tariffs and underutilized capacity, particularly from coal-fired power plants operating at just 15% capacity. This surplus, estimated to be capable of powering two major cities, has been a financial burden due to reduced industrial activity and inefficiencies in distribution. The government's decision to redirect this idle energy to Bitcoin mining and AI data centers is a calculated move to monetize this resource. According to Bitcoin mining researcher Daniel Batten's estimates, the allocated 2,000 MW could generate up to 17,000 BTC annually, equivalent to approximately $1.8 billion at current prices. This initiative not only promises economic returns but also aims to stabilize the power grid by utilizing excess capacity during off-peak periods. The announcement comes on the heels of Pakistan's legalization of digital currency earlier this year, which has attracted interest from international Bitcoin miners and data infrastructure firms. The establishment of the Pakistan Digital Assets Authority (PDAA) further underscores the government's commitment to creating a regulated and investor-friendly environment for digital finance. The PDAA aims to protect investors, empower developers, and build a secure framework for blockchain-based activities, tapping into Pakistan's estimated 15 to 20 million digital currency users and a $25 billion market potential. The government has also introduced tax incentives for AI data centers and duty exemptions for Bitcoin mining equipment, signaling a proactive approach to attracting foreign investment. Saqib, who also serves as CEO of the PCC, emphasized that the initiative is not about speculative trading but about building a 'sovereign reserve' of BTC to signal Pakistan's long-term commitment to decentralized finance (DeFi). At BTC Vegas 2025, Saqib announced the creation of a national Bitcoin wallet to hold digital assets already in state custody, drawing inspiration from the United States' nascent plan for a strategic Bitcoin reserve. 'We will be holding these Bitcoins and we will never, ever sell them,' Saqib declared, framing the reserve as a hedge against economic instability and a step toward digital transformation. However, the plan has sparked significant scrutiny, both domestically and internationally. The International Monetary Fund (IMF), currently engaged in financial negotiations with Pakistan, has raised concerns about allocating 2,000 MW for Bitcoin mining amid ongoing energy shortages in some regions. Critics question the prioritization of subsidized electricity rates for miners, which are significantly lower than those paid by households and industries, calling the move 'puzzling and opaque.' Economists have also highlighted the volatility of BTC, noting that while its price has soared past $110,000, its historic fluctuations pose risks to the government's strategy of accumulating digital assets as a reserve. Domestically, the initiative is at odds with Pakistan's current legal stance, where digital currency remains illegal for individual use. This contradiction has raised questions about the government's ability to reconcile its global ambitions with local regulations. The PDAA's formation is a step toward regulatory clarity, but the path forward remains complex, especially as Pakistan navigates a fragile economy that narrowly avoided default in 2023. The recent 45% decline in foreign direct investment and ongoing IMF negotiations add pressure to ensure that the BTC mining strategy delivers tangible economic benefits. Pakistan's digital infrastructure has received a boost from the Africa-2 Cable Project, a 45,000-kilometer submarine internet cable connecting 33 countries, enhancing the country's appeal as a hub for data centers. Geographically positioned to connect Asia, Europe, and the Middle East, Pakistan offers competitive advantages over regional rivals like India and Singapore, particularly regarding stable and affordable energy costs. The global demand for AI data centers, which exceeds available supply, further positions Pakistan to capitalize on this opportunity. The move aligns Pakistan with a growing list of nations, including Kazakhstan, Japan, Malaysia, and Bhutan, that have embraced legal Bitcoin mining to bolster their economies. By following in the footsteps of these countries and drawing inspiration from the U.S., Pakistan is betting on the transformative potential of blockchain technology and digital assets. However, the success of this initiative will depend on the government's ability to address regulatory contradictions, manage energy allocation equitably, and mitigate the risks associated with Bitcoin's volatility. As Pakistan embarks on this 'new digital frontier,' the world watches closely. The strategic allocation of 2,000 MW to Bitcoin mining and AI data centers represents a bold experiment in leveraging surplus energy for economic gain. If successful, it could redefine Pakistan's role in the global digital economy, turning a nation once burdened by energy overcapacity into a powerhouse of innovation and investment. Yet, the path is fraught with challenges, and only time will tell whether this gamble will pay off or become a cautionary tale in the volatile world of digital currency. In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek's coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI . Watch: Gorilla Pool provides end to end solution for ASIC mining title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Express Tribune
07-06-2025
- Business
- Express Tribune
PM's aide on crypto Bilal Bin Saqib meets Elon Musk's father
Minister of State for Crypto, Blockchain and CEO of the Pakistan Crypto Council Bilal Bin Saqib Listen to article Special Assistant to Prime Minister (SAPM) on Crypto and Blockchain Bilal Bin Saqib, held a notable meeting in New York with Errol Musk, father of billionaire entrepreneur Elon Musk. The minister shared a photograph of the meeting on social platform X, in which Errol Musk is seen greeting him warmly. The image quickly gained attention, particularly given the growing relevance of blockchain discussions in global finance. Met Elon Musk's dad. Requested that the markets finally have great momentum - let's not mess it up! The world needs Tesla and Trump in the same group chat! 🙏 Peace and Build — Bilal bin Saqib MBE (@Bilalbinsaqib) June 6, 2025 According to Saqib, Errol Musk remarked during the meeting, 'The market has finally picked up. Let's not ruin it.' The quote was seen by observers as a subtle reference to ongoing global economic volatility and the importance of responsible innovation in tech and finance. Bilal Bin Saqib added in his post that the world desires greater alignment between powerful innovators and decision-makers. 'The world wants Tesla and Trump in the same group chat for peace and progress,' he wrote, suggesting that coordinated global dialogue is vital for technological and geopolitical stability. The meeting is being viewed as a symbolic moment as Pakistan seeks to strengthen its positioning in emerging technologies, particularly in the areas of digital assets and blockchain. Read More: Pakistan is establishing 'Strategic Bitcoin Reserve A day earlier, SAPM on Crypto and Blockchain Bilal Bin Saqib met with over a dozen key US government officials and lawmakers this week in Washington to strengthen cooperation in the areas of digital assets, blockchain regulation and financial innovation. The visit also served to share Pakistan's initiatives — including the recent announcement of its Strategic Bitcoin Reserve, efforts to build a virtual asset regulatory framework, and the use of stablecoins to improve remittances and expand financial access. The exchanges highlighted the need for closer global coordination and the role emerging markets like Pakistan can play in shaping the next chapter of the digital economy. Last week, the Ministry of Finance reported that Pakistan allocated 2,000 megawatts of electricity for Bitcoin mining and AI data centres as part of a national initiative to make Pakistan a leader in digital innovation. Read more: IMF seeks explanation on Bitcoin, AI initiatives This initiative, led by the Pakistan Crypto Council (PCC), aims to use excess electricity, create high-tech jobs, and attract foreign investment. The allocation marks the first phase of a broader digital infrastructure rollout. Future developments are expected to include renewable energy-powered facilities, global partnerships with blockchain and AI firms, and the establishment of fintech and innovation hubs. On the other hand, the federal government and the central bank reiterated on Thursday that the use of cryptocurrencies was illegal and anyone dealing in these currencies was liable to be investigated by the Financial Monitoring Unit (FMU) and the Federal Investigation Agency (FIA). The statements were made by Federal Finance Secretary Imdad Ullah Bosal and State Bank of Pakistan (SBP) Executive Director Sohail Jawad during a meeting of the National Assembly Standing Committee on Finance. Read more: Crypto currencies' use is illegal, National Assembly told The development also came a day after the newly appointed Special Assistant to the Prime Minister on crypto and blockchain, Bilal Bin Saqib, made a pitch for the promotion of cryptocurrencies during his visit to the United States. Crypto is not a legal currency in Pakistan, said Bosal. He recommended that the committee invite the Pakistan Crypto Council (PCC) for further briefing. SAPM Bilal Bin Saqib is also the chief executive officer of the PCC. "The work on the crypto currencies is at a very, very preliminary stage and whenever the government decides to take it further, we would recommend to first have a comprehensive legal and regulatory framework for it," Bosal said, adding that so far, there was no such framework.
