Pakistan is actively developing its digital economy while facing numerous challenges, including economic issues and conflicts with India.
First Steps Into the Digital Economy
With a population of over 255 million, Pakistan is actively embracing digital technologies. In recent years, there has been a growing interest in cryptocurrencies and artificial intelligence, especially among young people in major cities like Karachi and Lahore. For many, it is a way to protect themselves from financial instability and preserve capital amidst high inflation. However, issues with access to high-speed internet are slowing the mass adoption of digital currencies.
Cryptocurrency Paradox
In Pakistan, there are contradictions between the government and the population regarding cryptocurrencies. Currently, digital assets are in a gray area. In 2022, authorities considered banning cryptocurrencies, while the State Bank announced plans for a central bank digital currency (CBDC) by 2025. Despite this, Pakistan ranks among the top in the world for digital asset adoption, with projections estimating over 27 million crypto users by the end of 2025.
Dreams of Bitcoin Mining
In 2021, the Khyber Pakhtunkhwa province announced plans to build state-owned farms for mining. The initiative gained momentum in 2025 when the head of the Cryptocurrency Board, Bilal bin Saqib, revealed plans to use surplus electricity for bitcoin mining. The focus is on utilizing renewable energy sources. However, the lack of a clear legal framework for these initiatives remains a significant barrier.
By comparing Pakistan's ambitions with reality, it becomes clear that the country must find a balance between aspirations and the economic situation. Without addressing fundamental issues, efforts to develop technology may remain on paper.
