Pakistani Authorities Turn to Bitcoin Mining to Boost Economy

Photo by Sameer Akhtari on Unsplash

Khyber Pakhtunkhwa (KP), which is Pakistan’s third largest semi-autonomous province, plans to set up state-backed BTC mining firms to boost the economy. According to Ziaullah Bangash, the advisor to the chief minister of the region on Science Information Technology, the provincial parliament has passed a bill that will allow KP to use its funds to creating two mining facilities.

Legal Standing on BTC Mining

Crypto mining has been legal in the province for years. The province now plans to start mining Bitcoin for profit, according to a local media report. However, no details have been released regarding the plan. For instance, details of the scale of the operation and the funds to be invested were not released. In the past, KP has advocated friendly laws at the national level when it comes to crypto.

According to Bangash, the KP Assembly also passed a no-objection certificate, which will make it possible for anyone to mine BTC and issue digital assets. The planned launch of the mining facilities coincides with the launch of a BTC mining facility by a long-time crypto advocate in Pakistan, Waqar Zaka. Mister Zaka has worked for years to develop the crypto sector in Pakistan.

In a tweet sent by Zaka, he said that after years of struggle, he would launch the biggest crypto mining firm in KP where anyone could invest and earn. Zaka went ahead to thank Bangash for his legal backing. Bangash, in response, stated that KP would seek the help of Zaka in the future to establish its crypto mining operation.

Boosting the Economy with BTC Mining- The Challenges

BTC mining may help to provide a boost to Pakistan’s economy. However, the profitability would depend on the power supply issues in the nation being sorted out first. In the nation, power cuts are a common occurrence. Besides that, Pakistan suffers from a severe electricity shortage.

For instance, Pakistan suffered a national blackout when the entire grid went down. The authorities blamed the issue on a technical fault at one of the main power plants in the nation located in the south. It was not until January 11 that power was restored to some areas of the nation.

BTC mining is a complex process that relies on powerful machines called ASICs. These ASICs consume a lot of power, and they require a stable power supply to mine BTC at a profit. However, KP has the advantage of being located in the cool mountainous region bordering Afghanistan. While it has one of the best climates for mining BTC, the issue of a reliable power supply must be dealt with effectively.

ORTA Mine Fund, the full name of OMF issued by the United States foundation of ORTA Mine Foundation, is a blockchain fund for bitcoin mines around the world.