New Net Metering Policy: Is Pakistan's Solar Boom in Jeopardy?

[Riaz Haq]

Recent experience in California has shown that changes in incentives have a huge impact on residential adoption of solar power technology. Since the introduction of NEM 3.0 last year, new rooftop solar business in California has dramatically slowed. New residential solar installation applications have plunged 80%, according to Cal Matters. This has driven many solar installers out of business. The business that remains is mostly focused on adding batteries to existing solar installations. 

Impact of California NEM 3.0 on Solar Business. Source: Cal Matters

California Net Energy Metering (NEM 3.0) was launched last year after heavy lobbying by the state's utility companies like PGE and SoCal Edison. It has reduced payments for the excess power exported by the consumer to the grid by 75%. This change means that the consumer is better off with storage batteries to maximize self-consumption of the power generated by the solar panels. Companies such as Tesla Solar with its PowerWall 3 battery are the main beneficiaries of this change. 

With rapidly falling solar panel prices, Pakistan is experiencing a solar power boom. The country imported some 13 gigawatts of solar modules in the first six months of the year, making it the third-largest destination for Chinese exporters, according to Bloomberg.   In addition, there is approximately 2.2 gigawatts (GW) of net-metered rooftop solar PV capacity connected to the grid by June 2024, according to IEEFA. 

What is likely to happen to this solar boom as Islamabad considers changes to its net metering policy? A recent study published by the Institute for Energy Economics and Financial Analysis (IEEFA) attempts to answer this question. 

Net Metering vs Net Billing Payback Period in Pakistan. Source: IEEFA

There are several proposals under consideration by the Pakistani government to change its net metering policy. All are designed to significantly reduce payments to the consumer for energy exported to the grid. One of these proposals likely to be adopted is to switch from "Net Metering" to "Net Billing". 

Net metering transactions are usually one-to-one, so the credits are often equal to the retail rate of electricity (aka what you pay). Net billing credits are often equal to the wholesale rate of electricity (aka what your utility pays), which is less than the retail rate, according to Energy Sage. Utilities tend to oppose net metering programs, so alternative compensation programs are increasingly being used. 

Analysis by Haneea Isaad, an Energy Finance Specialist at IEEFA, shows that the switch from net metering to net billing would still reduce the payback period for 5kW to 25kW solar systems combined with 50% to 70% self-consumption. She concludes that the payback period will be well under 4 years for a system that has a life of 25 to 30 years. It is better than the 5-year payback period in California under NEM 3.0. 

Would consumers without solar be stuck with high electricity bills? It is quite likely because capacity charges paid to independent power producers (IPPs) accounted for 62% of energy expenditure in Pakistan for the 2023-2024 fiscal year. For the 2024-2025 fiscal year, 64% of the total power purchase price is expected to be fixed capacity costs. Lower consumption of grid electricity will result in a disproportionate impact on consumers who rely entirely on grid power.  

Higher levels of self-consumption closer to 100% would require larger batteries which are still quite expensive in Pakistan. This is likely to change as traditional lead-acid battery makers switch to lithium ion batteries in the country. Recent launches of electric vehicle assembly plants in Pakistan are expected to boost the lithium-ion battery production and bring down prices in the country in the coming years, according to Mordor Intelligence. 

Related Links:

Haq's Musings

South Asia Investor Review

Clean Energy Revolution in Pakistan

Pakistan Electric Vehicle Policy

Nuclear Power in Pakistan

Solar Power Boom in Pakistan

Pakistan's Response to Climate Change

IPP Contacts Bankrupting Pakistan

Renewable Energy for Pakistan

Net Metering in Pakistan

LNG Imports in Pakistan

Growing Water Scarcity in Pakistan

China-Pakistan Economic Corridor

Ownership of Appliances and Vehicles in Pakistan

CPEC Transforming Pakistan

Electric Vehicle Manufacturing Projects in Pakistan

Riaz Haq's YouTube Channel

PakAlumni Social Network

[Riaz Haq]

Pakistan ends power deals to save $1.48 billion, cut tariffs | Reuters

https://www.reuters.com/business/energy/pakistans-biggest-private-u...

Government to save 411 billion rupees
Negotiations with more power producers underway
IMF bailout talks influenced decision to revisit power deals

KARACHI, Oct 10 (Reuters) - Pakistan's government has ended power purchase contracts with five private companies, including one with the country's largest utility that should have been in place until 2027, to cut costs, officials said on Thursday.
The news confirms comment from Power Minister Awais Leghari to Reuters last month that the government was re-negotiating deals with independent power producers to lower electricity tariffs as households and businesses struggle to manage soaring energy costs.
"We studied these agreements and we decided what plants we need and what plants we don't need," Leghari told a news conference in Islamabad on Thursday, adding the termination of the take or pay agreements will save the nation nearly 411 billion rupees ($1.48 billion) in the coming years.
Take or pay is referred to as capacity payments in Pakistan where the government has to pay private companies irrespective of how much of the power they generate is transferred to its grid.

Negotiations have also begun with other power producers to revise their contracts, Leghari said, adding people would soon see the impact in their monthly bills.
"Our aim is to bring the tariff down," he said.
The need to revisit the deals was an issue in talks for a critical staff-level pact in July with the International Monetary Fund (IMF) for a $7-billion bailout.
Earlier on Thursday Prime Minister Shehbaz Sharif said Pakistan has agreed with five independent power producers to revisit purchase contracts. He said that would save the country 60 billion rupees a year.

Pakistan's biggest private utility, Hub Power Company Ltd (HPWR.PSX), opens new tab, also said the company agreed to prematurely end a contract with the government to buy power from a southwestern generation project.
In a note to the Pakistan Stock Exchange, it said the government had agreed to meet its commitments up to Oct. 1, instead of an initial date of March 2027, in an action taken "in the greater national interest".

[Riaz Haq]

Home Batteries Are Cheaper Than Ever - CNET


https://www.cnet.com/home/energy-and-utilities/home-batteries-are-c...

The quoted battery prices have dropped to $1,133 per kilowatt-hour (kWh) of energy storage capacity -- a 16% drop from last year. Lower battery costs are a result of streamlined manufacturing processes, especially in China, and the decreasing cost of materials. In fact, 70% of the world's lithium-ion cell production happens in China, according to IDTechEX.

As prices have fallen, consumer interest in home battery products has increased. However, most people still prefer to purchase a battery with a solar panel system. According to the EnergySage report, 34% of US customers who bought a solar system chose to include a battery during the first half of 2024, a trend that is expected to continue to rise.

Which home batteries are the most popular?
In terms of popularity, Tesla and Enphaseremain the most quoted battery brands on EnergySage, exceeding 75% of the market share when combined. Tesla saw an 11% growth in overall market share within the past six months, likely due to the recent launch of the Tesla Powerwall 3, which more than doubles the power of the previous model.



Tesla's Powerwall 3 is also incredibly cheap for home battery standards. EnergySage says the current cost of the Powerwall 3 is $1,000 per kWh of storage. The Powerwall 3 has 13.5 kWh of energy storage capacity; that's about $13,500. But this doesn't include the cost of battery installation. We were quoted $16,551 for the cost of installing one Powerwall 3 on a home in Fort Mill, South Carolina, via Tesla's website. The estimate includes the cost of the battery, gateway device, accessories, installation and taxes.

Tesla and Enphase aren't the only battery brands out there that are fighting for space in the market. FranklinWH, SolarEdge, EG4 and SunPower are starting to take over what's left of the market. However, SunPower has discontinued its energy storage product and recently filed for bankruptcy.



Interest in home batteries
Consumer interest in home batteries has more than tripled year-over-year, according to EnergySage. This is especially apparent in California, where the battery and solar panel attachment rate has skyrocketed since the net billing changes in April. The attachment rate outside California also saw a 22% increase, especially in states that don't have consumer-friendly net metering policies like Tennessee and Georgia. This makes holding onto your excess energy more valuable than selling it to the utility company.

[Riaz Haq]

Pakistan to reform power distribution after IMF meetings, minister says
Owais Rawda explores what the most recent request for IMF climate funding means for power sector reform.

https://www.power-technology.com/comment/pakistan-to-reform-power-d...

At last week’s International Monetary Fund (IMF) Annual Meetings, Pakistan’s finance minister Muhammad Aurangzeb requested $1bn in funding from the IMF’s Resilience and Sustainability Trust (RST) to help mitigate the country’s climate risks and accelerate its energy transition. Established in 2022, the RST offers vulnerable low- and middle-income countries long-term concessional cash for climate-related spending.

Pakistan’s power sector circular debt, driven by inefficiencies in the power distribution network, crossed Rs2.66tn ($9.5bn) in May, according to a debt report released by the government’s power division. Meanwhile, citizens have suffered significant and frequent power outages in recent years, leaving millions without electricity.

The government’s faulty capacity payment contracts with independent power producers (IPPs) have come to light as the primary source of these challenges. Interest rates borne from private IPPs have not only worsened the debt crisis but spiked consumer tariffs, making electricity unaffordable.

In light of Aurangzeb’s request, coupled with multiple IPPs terminating their contracts with the government, the South Asian nation is now likely to announce significant reforms.

“These IPP payments had a detrimental effect on the overall quality of life for our citizens,” Awais Laghari, Pakistan’s minister for energy’s power division, tells Power Technology. “It is imperative that necessary steps are taken to resolve the issue.”

Without specifying the plans, he claims that the power division is currently evaluating options “through which the fiscal burden shared by the consumer, whether through taxes or debt repayments, can be optimised through various interventions that improves household economics and consumption at the same time”.

Laghari says that there are also plans to “unbundle electricity” and create a competitive market for energy, citing the recent introduction of an independent system and market operator (ISMO) as a step in this direction.

“This will ensure that a B2B [business-to-business] market for electricity can develop, which can eventually evolve into a B2B2C [business-to-business-to-consumer] market thereby providing greater options for consumers and lower prices through a competitive process,” he says.

The minister adds that the role of renewables in reforming the country’s power market will be imperative, “given their price advantage”. He believes that their ability to generate cheap electricity will “always put them ahead in any competitive market regime, making them critical to the success of the market.”

Following the IMF meetings, Laghari says that the government plans to “move forward actively” with the privatisation of electricity distribution companies and that “necessary improvements in governance are already underway”.

He believes that privatisation can enhance the efficiency of these companies, allowing them to remain a key player in the power market, which in turn will result in more affordable prices for consumers.

“Similarly, we continue to focus on investment in transmission to remove constraints so that lower cost electricity generated in the South can be moved across the country and overall consumer tariff can be reduced.”

About the author: Owais Rawda is a regulatory policy researcher that has written about the energy and technology industries.

[Riaz Haq]

Is distributed solar energy a game-changer for emerging economies? | World Economic Forum

https://www.weforum.org/stories/2024/10/distributed-solar-energy-em...

Distributed solar energy and other green tech, is helping to transform energy from a commodity to a technology, enabling energy-independence in emerging economies like Pakistan.
Solar energy boosts economic growth by offering affordable energy, driving business expansion and increasing job opportunities.
Solar energy fosters greater energy autonomy, reduces political dependence on centralized systems, improves governance and contributes to lower carbon emissions.
Under the scorching sun in Lahore, Pakistan, the hum of factory machinery persists uninterrupted. Just a year ago, frequent power outages would have stopped production. Today, a collection of solar panels on its roof keeps everything running. This scene is one of thousands happening across buildings in Pakistan, marking a quiet but powerful shift in how emerging economies power their growth.

At Exponential View, we identify distributed solar energy as a key factor for the future, offering cheaper and more accessible electricity. As our research suggests, this grassroots transformation has the potential to redefine economic opportunities and provide energy independence for millions in developing nations, reshaping their futures.

Solar is changing energy from a commodity, like fossil fuels, to a technology, bringing two key benefits. First, as solar technology improves, its cost continues to drop. Between 2010 and 2023, the price of solar energy has fallen by 33.4% every time production has doubled. In contrast, fossil fuel prices are controlled by global markets and politics.

Second, solar panels let people generate power locally, giving them more control over their energy. Unlike fossil fuels, which depend on expensive, unstable grids and resources from other regions, solar power allows individuals to become more energy-independent.

As batteries become cheaper, this independence will grow and energy generation could become increasingly decentralized. Emerging economies are leading this transformation and Pakistan is one of the clearest examples this year.

Pakistan’s solar boom
Pakistan is now the third-largest importer of Chinese solar panels, buying an incredible 13 gigawatts (GW) in just the first half of this year. To compare, the United Kingdom is expected to add only 1.5-2GW of solar capacity this year and the United States added 32GW in 2023. This likely makes Pakistan the sixth-largest installer of solar panels in 2024 but locally, the impact is even bigger.

In six months, Pakistan imported solar capacity equal to 30% of its total power capacity, which was 46GW in 2023.

However, Pakistan’s regulator, NEPRA, only tracks grid-connected or officially registered installations. Geospatial data shows solar panels spreading across factories, homes and even government buildings, pointing to an under-the-radar revolution in energy production.

[Riaz Haq]

Optimizing Pakistan's economy by renegotiating power purchase agreements
December 05, 2024
Haneea Isaad

https://ieefa.org/resources/optimizing-pakistans-economy-renegotiat...

Developing countries in Asia and Africa, riddled with excess capacity payments and a surplus of generation capacity, are using contract renegotiation to lower their economic burden and conserve the foreign exchange. In Pakistan, Independent Power Producers (IPPs) have allegedly made excessive profits by under-reporting efficiency gains and over-invoicing, thus necessitating complex power purchase agreement (PPA) renegotiations. Contracts with five IPPs have already been terminated, while 18 others face a possible conversion to a take-and-pay basis.

Renegotiations require both parties to offer concessions to arrive at a deal. For the five IPPs with terminated contracts, two publicly listed companies may have waived some receivables while taking the government’s offered settlement. Lalpir Power Plant, a 362 megawatts (MW) furnace oil-based plant located in Muzaffargarh, took a haircut of PKR7 billion. HubCo’s 1292MW furnace oil-based power plant was offered PKR36.5 billion in compensation, almost PKR20 billion less than the total company valuation as of June 2024.

Renegotiation of concession agreements is not an unusual practice in the power sector, especially under destabilizing economic conditions such as macroeconomic shocks. Ghana, like Pakistan, has struggled with energy sector reforms prompted by rising power sector debt and unpaid dues. The country recently underwent a similar situation, successfully renegotiating contracts with five IPPs, including debt structuring and conversion to a take-and-pay system.

The government in Pakistan has attempted PPA renegotiations in 1998, 2012, 2020, and now in 2024. IPPs allege that repeated contract renegotiations and coercive tactics will hurt investor confidence and future expansion opportunities in the power sector.

An examination of the PPA terms reveals that the incentives offered to IPPs have been overly generous with backstopped payment guarantees, dollar indexation, and high return on equity allowances, contributing to Pakistan’s ever-rising power sector circular debt.

Considering that the IPPs under review have paid off their debts and have earned reasonable returns on equity, contract termination or conversion to a take-and-pay basis is a reasonable proposition given Pakistan’s persistent economic struggles and foreign exchange shortage.

While renegotiation could allow the government to save scarce economic resources, the IPPs may also have a chance at quick compensation for unpaid dues or the ability to sell power to secondary markets once Competitive Trading Bilateral Contract Market (CTBCM) reforms are operationalized. However, the negotiation process should be commercial and transparent to ensure optimal outcomes.

[Riaz Haq]

Recent documents indicate that there are pending applications for solar net metering with a total capacity of 58,822 megawatts (MW), far surpassing the nation’s existing power generation capacity of 46,000 MW, as reported by the National Electric Power Regulatory Authority (NEPRA).


https://www.techjuice.pk/4742-pending-net-metering-applications-exc...

IESCO currently holds the highest number of pending applications, totaling 1,363 requests that amount to a capacity of 12,276 MW. Among the significant backlogs are GEPCO, which has 117 requests totaling 6,282 MW, LESCO with 699 requests for 6,143 MW. Additionally, FESCO has 871 requests amounting to 12,399 MW, while K-Electric has 773 requests for 10,164 MW.

Delays are primarily attributed to the elevated buy-back rates associated with the net metering system. NEPRA has urged for a thoughtful reassessment of the tariff framework to tackle this concern. The authority has proposed that support for individual solar consumers should take precedence over large-scale solar projects to attain more favorable results.

Recent documents reveal that by June 30, 2024, more than 156,372 solar facilities, with a combined capacity of 2,200 MW, were established under the net metering program. The consumer base surged from 75,724 in FY2022-23 to an impressive 157,844 by the conclusion of FY2023-24, marking a significant doubling within a single year.

Update: However, according to the recent update on the NEPRA report, an earlier computation resulted in a 1000-fold misreport of the energy production capacity awaiting applications.

[Riaz Haq]

The power grid's battery capacity surged in 2024


https://www.marketplace.org/2025/03/12/the-electric-grids-battery-c...

Big banks of batteries are an important part of the renewable energy transition. Their role is to store power generated when the sun is shining or the wind is blowing so that it can be used when it’s dark or the wind is calm.

According to the Energy Information Administration, the U.S. made good progress on the battery storage front in 2024 — capacity grew 66%. And almost twice as much could be added to the grid this year.

A battery storage system isn’t much to look at. “It’s just, you know, a large, unremarkable set of rectangular structures hanging around,” said Michael Craig at the University of Michigan.

But inside those unremarkable rectangles are lithium-ion batteries.

Seth Feaster at the Institute for Energy Economics and Financial Analysis said they have something pretty remarkable: “The ability to time-shift power.”

This means storing up power generated when demand is low, then pushing it out into the grid when demand is high.

A lot of these battery systems are up and running in Texas. Feaster said that the other morning at about 5 a.m., “the market power price in Texas was below $20. But once you hit about 6:30, 7 o’clock, as demand increases, power prices jump.”

So a power company could have charged its batteries on the cheap at 5 a.m. “and then gotten two or three or four times that price for that power during the morning period of peak demand.”

The costs associated with batteries have come down, said Joshua Rhodes at the University of Texas at Austin, thanks to their widespread use in electric vehicles, laptops, smartphones and storage systems.

“The price of lithium has gone down by, like, 80%. The cost of batteries to install, you know, has gone down by a factor of two or three,” said Rhodes.

Battery storage has also benefited from government incentives — including a tax credit in the Biden-era Inflation Reduction Act. The GOP-controlled Congress could repeal it. But, said Allison Feeney at Wood Mackenzie, “even if the IRA phases out earlier or goes away entirely, we’ll still see strong storage installs, but they just won’t be probably as high.”

They could stay strong, she said, because demand for electricity is likely to increase. And battery storage is, for now, a cheaper way to meet that demand.

But there’s one more wild card on the price side, Feeney said. You guessed it — tariffs.

[Riaz Haq]

Pakistan cuts solar net-metering buyback rate to Rs10 per unit
ECC approves amendments to net-metering regulations to ease financial burden on grid consumers.

https://tribune.com.pk/story/2534077/govt-revises-solar-net-meterin...

The government has reduced the buyback rate for electricity under net metering from Rs27 per unit to Rs10 per unit, citing a "significant increase in the number of solar net-metering consumers" and the resulting financial strain on grid consumers.

The Economic Coordination Committee (ECC) of the cabinet, chaired by Finance Minister Muhammad Aurangzeb, approved amendments to the existing net-metering regulations aimed at alleviating the growing financial burden on grid consumers, according to a statement from the Finance Division.

As part of the approved changes, the ECC revised the buyback rate from the National Average Power Purchase Price (NAPP) to Rs10 per unit. The decision follows concerns about the financial impact of the rising number of solar net-metering consumers on the national power grid.

The National Electric Power Regulatory Authority (NEPRA) will now be authorised to revise the buyback rate periodically, ensuring the framework remains flexible and aligned with market conditions.

However, the revised framework will not apply to existing net-metered consumers who have valid licenses, agreements, or concurrence under the NEPRA (Alternative & Renewable Energy) Distributed Generation and Net Metering Regulations, 2015.

These agreements will remain effective until they expire, ensuring the rights and obligations of these consumers are upheld as per the original terms.

The ECC also approved an update to the settlement mechanism for electricity billing. Under the new structure, imported and exported units will be billed separately.


Exported units will be purchased at the new buyback rate of Rs10 per unit, while imported units will be charged according to peak/off-peak rates, inclusive of taxes and surcharges.

The Power Division was authorised to issue proposed guidelines, subject to Cabinet’s ratification, for NEPRA’s incorporation into the regulatory framework to ensure clarity and consistency in the implementation of these changes. The decision follows discussions on the growing impact of solar net-metering on the national power grid.

The Power Division highlighted the need for regulatory adjustments due to the record decline in solar panel prices, which has led to a sharp rise in the number of solar net-metering consumers.

As of December 2024, solar net-metering consumers had transferred a burden of Rs159 billion to grid consumers, a figure that is projected to grow to Rs4,240 billion by 2034 without timely amendments.

The number of solar net-metering consumers surged significantly, reaching 283,000 by December 2024, up from 226,440 in October, 2024. The total installed capacity also grew from 321 MW in 2021 to 4,124 MW by December, 2024, underscoring the rapid expansion of the sector.

However, the increase in solar net-metering consumers has led to a higher cost of electricity for grid consumers, undermining the government’s efforts to reduce power tariffs.

The ECC also discussed how these consumers avoid paying the fixed charge component of the tariff, which includes capacity charges and the fixed expenses of power distribution and transmission, placing a disproportionate financial burden on grid consumers.

The committee also noted that 80% of solar net-metering consumers are concentrated in nine major cities, with a significant portion located in affluent areas. This geographic concentration highlights the need for regulatory reforms to ensure fairness and balance within the energy distribution system.

[Riaz Haq]

Faysal Bank, Akhuwat Foundation, TCF partner for interest-free solar financing

https://www.thenews.com.pk/print/1290007-faysal-bank-akhuwat-founda...

KARACHI: Faysal Bank Limited (FBL) has strengthened its commitment to sustainability and women’s empowerment by partnering with Akhuwat Islamic Microfinance (AIM) and The Citizens Foundation (TCF), a statement said.

Under this collaboration, the bank aims to provide women with interest-free solar financing. Launched on International Women’s Day, this initiative reflects FBL’s long-term vision of creating an equitable and sustainable future while making a real impact through corporate social responsibility (CSR).

This initiative will allow educators and women across Pakistan to install solar systems with flexible repayment plans.

By promoting green energy, this initiative supports global climate goals. It helps reduce electricity costs, lowers carbon emissions, and lessens reliance on the national grid. Faysal Bank remains committed to meaningful change, ensuring financial relief and sustainability for educators—most of whom are women -- so they can continue shaping future generations.

Speaking on the occasion, President and CEO of Faysal Bank Yousaf Hussain stated: “At Faysal Bank, we believe that true progress is driven by sustainability and empowerment, leading to meaningful action. Through this initiative, we are not only promoting renewable energy but also alleviating financial burdens and fostering long-term resilience for women. In line with this year’s International Women’s Day theme, Accelerate Action, we remain steadfast in our commitment to creating a more inclusive, equitable, and sustainable future -- one where all women have the opportunity to thrive”.

Founder of Akhuwat Foundation Dr Amjad Saqib said: “Our collaboration is a step towards creating a more sustainable and equitable society. By offering interest-free solar financing, we are not only contributing to environmental conservation but also uplifting women and educators, providing them with financial independence and a cleaner, greener future. We extend our heartfelt gratitude to Faysal Bank for supporting this noble cause.”

CEO of TCF Asad Ayub shared his remarks: “This partnership brings together our shared vision of empowering women and ensuring a sustainable future for the next generation. By providing access to solar energy, we are equipping women with the tools for a brighter, self-sufficient tomorrow. We are grateful to Faysal Bank and Akhuwat Foundation for making this initiative possible.”

[Riaz Haq]

Report: Pakistan to Unveil Crypto-Friendly Electricity Tariffs to Lure Miners – Mining Bitcoin News

https://news.bitcoin.com/report-pakistan-to-unveil-crypto-friendly-...

Pakistan is reportedly planning to develop a specialized electricity tariff regime for crypto mining and blockchain-based data centers.

In a significant move, Pakistan is reportedly developing specialized electricity tariffs to attract crypto mining and blockchain-based data centers, further loosening its past stance on cryptocurrencies. This initiative aims to capitalize on the country’s surplus power capacity, transforming a potential liability into a valuable asset while fostering growth in the burgeoning digital asset industry.
According to a Dawn report citing sources in Pakistan’s power ministry, extensive consultations are underway with stakeholders to formulate an attractive electricity tariff structure for emerging industries. This development follows a series of high-level discussions, including a recent meeting between Power Minister Awais Leghari and Bilal Bin Saqib, CEO of the newly formed Pakistan Crypto Council (PCC).

As reported by Bitcoin.com News, the PCC was launched with the mandate of integrating blockchain and digital assets into the financial system. The PCC’s inaugural meeting on March 21, presided over by Finance Minister Muhammad Aurangzeb, further solidified the government’s interest in exploring the crypto space.

At this meeting, Saqib presented a vision for utilizing Pakistan’s surplus electricity for bitcoin mining, drawing significant attention from attendees, including State Bank Governor Jameel Ahmad and the Securities and Exchange Commission of Pakistan Chairman Akif Saeed.

In remarks commending the PCC’s first meeting, the Pakistani Finance Minister said, “This is the beginning of a new digital chapter for our economy. We are committed to building a transparent, future-ready financial ecosystem that attracts investment, empowers our youth, and puts Pakistan on the global map as a leader in emerging technologies.”

The PCC-sponsored initiative highlights the shift in Pakistan’s approach to cryptocurrencies. Previously, Pakistan regulators, including the State Bank of Pakistan (SBP), warned against the use of cryptocurrencies, citing concerns about money laundering and financial instability. In 2023, the SBP and the Information Ministry considered banning cryptocurrencies altogether.

The government has since recognized the potential of blockchain technology and digital assets, leading to its latest attempt to attract miners.