Pakistan Commits to Building Strategic Bitcoin Reserve, Expanding National Mining Operations
ISLAMABAD, May 31, 2025 — In a landmark policy shift, Pakistan has announced the creation of a government-led Strategic Bitcoin Reserve, positioning itself among the first countries in South Asia to formally integrate Bitcoin into its national economic strategy. The move, revealed at the Bitcoin Vegas 2025 conference, marks a dramatic departure from Pakistan’s previous stance on digital assets and signals a broader embrace of blockchain technology and decentralized finance139.
A Historic Policy Pivot
Bilal Bin Saqib, CEO of the Pakistan Crypto Council and special adviser to the Prime Minister on blockchain and crypto, made the announcement before an international audience that included high-profile US political figures. “Today is a very historic day. Today, I announce the Pakistani government is setting up its own government-led Bitcoin Strategic Reserve,” Saqib declared, crediting the United States for inspiring the initiative13.
This pivot follows years of skepticism and outright bans on cryptocurrencies by Pakistani regulators. Until recently, Pakistan’s central bank and securities authorities maintained that cryptocurrency would never be legalized in the country13. The new direction reflects a global trend, with countries like the US and El Salvador experimenting with state-level crypto reserves, though with varying degrees of success and controversy13.
The Mechanics of the Reserve
The strategic Bitcoin reserve will be managed directly by the government and is intended as a long-term holding — not for speculation or trading. Saqib emphasized that the assets in the reserve would “never, ever be sold,” underlining a commitment to hold Bitcoin as a sovereign asset and a signal of long-term belief in decentralized finance93.
A national Bitcoin wallet has also been launched to hold these assets in state custody. The government clarified that the reserve is not intended for short-term gains but as a store of value and a hedge against currency devaluation and global economic volatility39.
Energy, Mining, and Digital Infrastructure
The announcement comes on the heels of Pakistan’s allocation of 2,000 megawatts (MW) of surplus electricity for Bitcoin mining and artificial intelligence (AI) data centers37. This energy allocation is part of a phased digital infrastructure strategy, with the first phase focusing on repurposing underutilized power for high-demand digital applications. The government expects this approach to monetize surplus electricity, attract billions in foreign investment, and create high-tech jobs72.
International mining companies and data infrastructure firms have already shown interest, with several exploratory visits reported in recent months27. Pakistan’s competitive advantages — affordable energy, available land, and a growing talent pool — are being touted as key draws for global partners2.
Regulatory and Institutional Developments
To oversee the expanding digital asset ecosystem, the Ministry of Finance has established the Pakistan Digital Asset Authority (PDAA). The PDAA will regulate exchanges, wallets, stablecoins, and DeFi platforms, and supervise the tokenization of national assets, aligning Pakistan’s framework with international standards such as those set by the Financial Action Task Force (FATF)61211.
Binance co-founder Changpeng Zhao has been appointed as an adviser to the Crypto Council, providing guidance on regulatory frameworks, blockchain infrastructure, and adoption strategies16.
Economic and Geopolitical Implications
The government’s new approach is designed to attract foreign direct investment, generate foreign exchange through Bitcoin mining, and boost national revenue57. By holding Bitcoin in a sovereign reserve, Pakistan aims to signal stability and innovation to international markets, potentially improving its standing in global finance39.
However, the move is not without risks. Observers point to El Salvador’s experience, where aggressive Bitcoin adoption led to economic instability and IMF intervention13. Pakistan’s own foreign reserves are limited, raising questions about how much capital can be allocated to crypto without impacting other critical areas13.
Challenges and Criticisms
Despite the optimism, significant hurdles remain. The legal status of cryptocurrencies in Pakistan is still ambiguous, with some officials reiterating that crypto remains technically banned under existing rules1113. The International Monetary Fund (IMF) has raised concerns about the legality and fiscal prudence of Pakistan’s crypto initiatives, especially amid ongoing negotiations for financial support4512.
The IMF is seeking clarity on the reserve’s legal framework, its impact on fiscal discipline, and the potential strain on Pakistan’s already fragile energy system4512. The government has yet to fully address these concerns, and a special session between IMF officials and Pakistani regulators is expected in the coming weeks614.
Looking Ahead
Pakistan’s commitment to building a Strategic Bitcoin Reserve and expanding its digital infrastructure marks a bold experiment in national economic policy. If successful, it could position the country as a regional leader in blockchain innovation and digital finance. However, success will depend on the government’s ability to navigate regulatory challenges, international scrutiny, and the volatile nature of the crypto market.
As Pakistan steps onto the global crypto stage, the world will be watching closely to see whether this ambitious bet on Bitcoin can deliver the promised dividends — or if it will become another cautionary tale in the evolving saga of digital assets1339.
