A view of the Bab-e-Khyber gateway near Peshawar, capital of the Pakistani province of Khyber Pakhtunkhwa. Photo: Wikipedia

A Pakistani province is turning to bitcoin mining to generate revenue.

The government of semi-autonomous Khyber Pakhtunkhwa (KP) is establishing two state-backed bitcoin mining farms, local media outlet BOL News reports

An adviser to the chief minister of KP on Science and Information Technology said the provincial parliament passed a bill allowing officials to allocate funds for the project.

The government of the mountainous province situated along the border with Afghanistan did not reveal details about the capacity of the mining farms or the level of investment involved.

The KP Assembly also passed a separate no-objection certificate permitting operators to mine cryptocurrency and issue their own digital assets. This coincided with the launch of a private bitcoin mining farm by Waqar Zaka, a long-time crypto enthusiast who has worked to develop the Pakistani crypto industry, Bitcoin.com reports.

“After years of struggle, I am launching the biggest crypto mining farm in KPK where you all can invest & earn,” Zaka said in a tweet. He thanked Bangash for his legal backing. Replying, Bangash stated that “in future, the help of Waqar Zaka will be sought” in the KP administration’s crypto mining plans.

Bitcoin mining consumes an enormous amount of energy, which could be highly problematic in a country facing severe electricity shortages and frequent power cuts.

Last Saturday, the entire country was plunged into into darkness. The government blamed the blackouts on a “technical fault” at one of the country’s main power plants in the south. Pakistan only began to incrementally restore power on Sunday, local media outlet UrduPoint News reported.

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