Pakistan is experiencing an extremely difficult economic period. Inflation is high, energy is in short supply, and the country is still in talks with the International Monetary Fund (IMF) for financial help. Amid all this, the country’s taken a bold decision to enter cryptocurrency, specifically Bitcoin. Pakistan’s Bitcoin gamble, therefore, is a development that’s raised more questions than provide solutions.
Pakistan’s decision to enter Bitcoin and AI realm
In May 2025, Pakistan’s government announced it would set aside 2,000 megawatts (MW) of electricity to support Bitcoin mining and artificial intelligence (AI) data centres. The idea is to use extra electricity that isn’t being used elsewhere and to encourage investments from foreign companies.
This plan is part of a bigger strategy. Pakistan’s Minister of State for Crypto and Blockchain, Bilal Bin Saqib, introduced the idea of a Strategic Bitcoin Reserve at a major cryptocurrency conference in Las Vegas. This means Pakistan wants to keep Bitcoin as part of its national assets, like gold or foreign currency.
To manage all this, a new organisation called the Pakistan Virtual Assets Regulatory Authority (PVARA) has been created. Its job is to make rules and keep track of how cryptocurrencies are being used in the country.
Pakistan’s Bitcoin gamble: A case of confusion and contradictions
While these announcements sound exciting, not everything is clear. For years, Pakistan’s central bank was against cryptocurrencies. Recently, that position seemed to change. But now, different government departments are giving mixed signals. Some say Bitcoin is legal; others say it’s still banned. This confusion makes it hard for investors to trust what’s going on.
On top of that, the IMF has raised serious concerns. Pakistan is already facing major power cuts, and many people don’t have access to reliable electricity. So, using thousands of megawatts for Bitcoin mining instead of homes and businesses has sparked debate.
Geopolitical concerns: Is Pakistan taking a page out of Iran’s book?
Some experts are comparing Pakistan’s actions to what Iran has done. Iran has used Bitcoin mining as a way to earn money while facing international sanctions. But this has also caused major blackouts and energy shortages for ordinary people.
Now, Pakistan is also strengthening its ties with Iran. The two countries have signed several agreements recently, including plans to cooperate in trade and technology. Some fear that this could include shared cryptocurrency activities, which might not sit well with Western countries.
Because of these concerns, India has asked the Financial Action Task Force (FATF)—an international group that watches for illegal financial activity—to put Pakistan back on its “grey list“. This list includes countries that are seen as a risk for things like money laundering and terrorism financing.
What does this mean for Pakistan?
On one hand, this move into Bitcoin and AI could be a smart way for Pakistan to boost its economy, create jobs, and become a leader in digital innovation. Cryptocurrencies and AI are rapidly growing fields, and getting involved now might help Pakistan gain an edge.
But on the other hand, this is a high-risk move. The country’s basic problems—like energy shortages, weak governance, and international scrutiny—haven’t gone away. Using electricity for Bitcoin mining while people face power cuts could increase public anger. And if cryptocurrencies are not regulated properly, they could be misused.
All things said and done, betting on Bitcoin and AI during economic hardship is quite a risky move. It could either help the country modernise its economy or create new problems that make the situation worse.
For now, all eyes are on how Pakistan’s Bitcoin gamble affect its management of its energy resources, while attending to global regulations, and foreign relations.
