Pakistan Allocates 2,000 MW for Bitcoin Mining to Attract Foreign Investment

Pakistan’s Finance Ministry has announced a significant initiative to allocate 2,000 megawatts (MW) of excess energy for Bitcoin mining and AI data centres. This move is part of a broader strategy to stimulate the economy and make use of surplus electricity that would otherwise go to waste on the grid. The country has been dealing with high electricity tariffs, prompting many consumers and businesses to explore alternative energy sources like solar power. The government aims to promote renewable energy to foster a more sustainable environment.

The first phase of the government’s plan focuses on attracting foreign investment by incentivizing key industries such as crypto mining and AI data centres. Finance Minister Muhammad Aurangzeb highlighted that the plan has a dual purpose: to attract billions of dollars in foreign investment and to create high-tech jobs for Pakistanis nationwide. The second phase will introduce sustainability and corporate responsibility measures, integrating natural resources within the crypto mining industry. Solar power and other renewable energy sources will be used to power Bitcoin mining centres, thereby enhancing the crypto industry while protecting the environment. The Finance Ministry has already received interest from foreign investors regarding the project’s second phase, with various delegates visiting Pakistan to discuss the new opportunities.

The Finance Ministry is considering various tax exemptions to boost crypto mining in the country. While sustainability measures, such as utilizing excess power for mining, may not be immediately profitable, the government believes these projects will benefit the country in the long term. The government may experiment with measures such as lowering income taxes and import tariffs to stimulate the crypto industry and promote sustainability. Additionally, the government is building an undersea cable connecting Africa, the Middle East, and South Asia to increase internet connectivity, a crucial step for boosting the crypto and AI market.

Finance Minister Muhammad Aurangzeb sees this as a pivotal moment for Pakistan to capitalize on its excess energy problem by repurposing it for Bitcoin mining applications. Aurangzeb aims to attract foreign investors to work on AI and blockchain innovation and to transition to conservation and ecological programs. In the short term, Pakistan could become an international hub for data centres due to the large amount of excess energy. Aurangzeb also believes that Pakistan’s strategic location makes it an ideal place to build digital infrastructure between Asia and Africa. More international delegates are expected to visit Pakistan in the coming weeks.

Pakistan already has a burgeoning technology sector with the potential to become a global leader in providing secure data centre services. With a population of 250 million and a crypto population of 40 million users, Pakistan has the potential to create thousands of jobs and educate a new generation of students specializing in technology, mathematics, and science. The country’s ambitions include transitioning to renewable technology and becoming a world leader in conservation. Cryptocurrency, when applied to real-world problems like conservation, can have significant value beyond its speculative nature. Pakistan already possesses a variety of renewable energy sources, including hydropower, wind, and solar.