Pakistan allocates 2,000MW power for Bitcoin mining and AI centers

Pakistan is allocating 2,000 megawatts of surplus electricity to power Bitcoin mining and artificial intelligence (AI) centers, marking a significant step in its digital transformation strategy. This initiative, spearheaded by the Pakistan Crypto Council and supported by the Ministry of Finance, aims to attract substantial foreign investment and create high-tech jobs.

The plan unfolds in two phases. The first phase directs excess electricity towards AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb anticipates billions in foreign investment as a result. The second phase will integrate renewable energy sources into mining operations, promoting sustainable growth. Already, significant interest from international Bitcoin miners and AI firms has been observed, with multiple foreign delegations visiting Pakistan to explore partnerships.

To further incentivize investment, the Ministry of Finance has introduced tax incentives for AI centers and duty exemptions for Bitcoin miners. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, hailed this development as a turning point for the nation’s digital economy, believing that clear regulations and transparency will position Pakistan as a major player in global crypto and AI markets. This initiative builds upon a proposal made by Saqib at the Crypto Council’s inaugural meeting in March, which included key figures from Pakistan’s government and financial institutions.

Complementing this initiative, the Ministry of Finance established the Pakistan Digital Assets Authority (PDAA) on May 21. The PDAA will regulate blockchain-based financial infrastructure, including exchanges, custodians, and decentralized finance applications. Crucially, the PDAA will oversee the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining and facilitate the tokenization of national assets and government debt.

Pakistan’s proactive approach is consistent with its high ranking (9th) in Chainalysis’ 2024 crypto adoption index, reflecting strong retail adoption and transactions. Statista data further underscores the rapid growth of Pakistan’s crypto market, projecting over 27 million crypto users by 2025. This ambitious plan positions Pakistan as a significant player in the global cryptocurrency and AI landscape.