Pakistan’s Bitcoin Mining Gamble: Too Little, Too Late to Move the Market?

Another government jumps on the crypto bandwagon—this time with mining ambitions. But let’s be real: Pakistan’s late-stage entry won’t even make BTC blink.

Why it matters (or doesn’t): With global hash rate dominated by industrial-scale operations, a single country’s half-baked mining plan is like bringing a knife to a nuclear arms race. Especially when that country’s energy grid is about as stable as a meme coin’s price chart.

The cynical take: If this were 2017, maybe. But in 2025? Unless they’ve discovered infinite zero-cost energy (spoiler: they haven’t), this reeks of bureaucratic crypto-FOMO—another case of governments chasing yesterday’s bull run.

Economic and Infrastructure Challenges Undermine Feasibility

At the core of the skepticism lies the cost of power in Pakistan. With commercial electricity rates ranging between $0.20 and $0.22 per kilowatt-hour (kWh), bitcoin mining in the country becomes economically unfeasible compared to mining hubs like Iran or Kuwait, where energy costs are significantly lower. Even if the government introduces a subsidized rate of $0.09/kWh, it would still only be marginally competitive in the global mining ecosystem.

Compounding the issue is Pakistan’s fragile energy infrastructure. The country’s national power grid is plagued by frequent outages and high transmission and distribution losses. These systemic inefficiencies create a risky environment for the kind of energy-intensive operations Bitcoin mining demands.

An electrical engineer based in Pakistan noted that even if the state were to push forward with subsidized electricity, these infrastructure gaps WOULD continue to hamper any large-scale efforts. Without reliable, affordable power, Bitcoin mining becomes a logistical and financial gamble.

IMF Raises Red Flags

Adding to the mounting pressure is the International Monetary Fund (IMF), which has openly questioned the rationale behind Pakistan’s declaration. According to sources familiar with the matter, the move was made without prior consultation with the IMF—a red flag considering the country’s ongoing reliance on international financial support.

The IMF’s concerns center around Pakistan’s persistent energy shortages and its deteriorating fiscal situation. Allocating 2,000 MW—an enormous quantity in a country already struggling to meet basic energy needs—appears, at best, overly ambitious and, at worst, fiscally irresponsible.

This external scrutiny has cast a cloud over the country’s crypto aspirations. With the IMF involved, regulatory and financial roadblocks could slow or completely derail the implementation of the mining plan, making it more of a political talking point than a tangible strategy.

Little to No Short-Term Impact on Bitcoin Price

From a market perspective, Pakistan’s entry into Bitcoin mining is unlikely to cause ripples in the BTC price anytime soon. As one analyst put it, “Even if Pakistan sets up mining operations, it won’t push Bitcoin to new highs overnight.” The Bitcoin network is vast and decentralized, and the contribution from a financially struggling country like Pakistan is minimal in the global context.

While a successful mining program could theoretically enhance the network’s security and contribute to adoption narratives over the long term, it won’t be enough to shift the price dynamics in any significant way. Current price movements are far more influenced by broader market trends, including institutional adoption, macroeconomic shifts, regulatory changes, and investor sentiment in larger economies.

Long-Term Potential Remains Unclear

Despite the skepticism, Pakistan’s statement is not without significance. It signals a growing awareness of Bitcoin’s potential role in national financial strategies, especially in countries facing currency devaluation and economic isolation. If properly implemented, a government-led crypto strategy could help drive innovation and possibly improve financial inclusion.

Still, any long-term impact on Bitcoin price will depend on global forces far beyond Pakistan’s borders. Until then, the country’s plan is more of a political and ideological statement than a market-moving event.

Final Thoughts

Pakistan’s foray into Bitcoin mining is ambitious and headline-grabbing, but it comes with substantial obstacles. High energy costs, poor infrastructure, and international scrutiny make the initiative challenging to execute at scale. While the symbolic value of such a move is not to be ignored, its influence on Bitcoin’s price will likely remain minimal—at least for now.

To truly make an impact, Pakistan will need to resolve its internal energy and economic issues, provide regulatory clarity, and engage transparently with international partners. Without those steps, its Bitcoin mining plans may remain just that—plans.