Pakistan Allocates 2,000 MW for Bitcoin Mining and AI Centers

Pakistan has allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers. This move is part of a broader digital transformation plan spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance. The government plans to channel excess power into AI infrastructure and crypto mining operations in the first phase. Finance Minister Muhammad Aurangzeb stated that the decision is expected to attract billions in foreign investment while generating high-tech employment across the country.

The initiative’s second phase will introduce access to renewable energy for mining operations, aiming to balance growth with environmental responsibility. Interest from international Bitcoin miners and AI firms has already picked up, with multiple foreign delegations visiting Pakistan in recent months to explore potential partnerships. To further incentivize investment, the Ministry of Finance announced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners.

Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, welcomed the development, calling it a “turning point” for the country’s digital economy. Saqib claimed that with clear regulations and a transparent framework, Pakistan could emerge as a significant player in the global crypto and AI sectors. Saqib first proposed using the country’s runoff energy to fuel Bitcoin mining at the Crypto Council’s inaugural meeting on March 21. The meeting included lawmakers, the Bank of Pakistan’s governor, the chairman of Pakistan’s Securities and Exchange Commission, and the federal information technology secretary.

On May 21, Pakistan’s Ministry of Finance endorsed the creation of a dedicated body to regulate blockchain-based financial infrastructure in the country. The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body to oversee licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications. The PDAA will also be tasked with tokenizing national assets and government debt, facilitating monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and helping startups build blockchain-based solutions at scale.

Pakistan ranked highly in the 2024 crypto adoption index, mainly due to strong retail adoption and transactions at centralized services. Data also shows Pakistan’s crypto market is “experiencing rapid growth,” estimating the number of crypto users to amount to over 27 million by 2025, out of a population of 247 million.

This initiative is likely to have far-reaching implications for the country's economy. By attracting Bitcoin mining operations and AI centers, Pakistan can expect an influx of foreign investment, which could stimulate job creation and technological advancements. Additionally, the monetization of surplus electricity will contribute to the country's energy sector, potentially reducing reliance on imported energy sources. The allocation of power for these high-energy-consuming activities also reflects a strategic shift in Pakistan's energy policy. Traditionally, surplus electricity has been a challenge for the country, often leading to inefficiencies and wastage. By redirecting this surplus towards productive uses, Pakistan is not only addressing an energy management issue but also creating new opportunities for economic growth.

The move is also expected to enhance Pakistan's standing in the global tech community. As Bitcoin mining and AI technologies continue to gain prominence, countries that can provide the necessary infrastructure and support are likely to become key players in these sectors. Pakistan's allocation of 2,000 MW of electricity positions it as a forward-thinking nation, ready to embrace the future of digital innovation. In summary, Pakistan's decision to allocate 2,000 MW of electricity for Bitcoin mining and AI data centers is a bold step towards digital transformation. This initiative not only addresses the challenge of surplus electricity but also opens up new avenues for economic growth and technological advancement. By creating a conducive environment for high-tech industries, Pakistan is poised to become a significant player in the global digital landscape.