Pakistan Allocates 2,000 MW for Bitcoin Mining, Establishes Strategic Reserve

Coin WorldWednesday, May 28, 2025 6:41 pm ET
2min read

Pakistan has announced ambitious plans to establish a strategic Bitcoin reserve and allocate 2,000 megawatts of electricity for Bitcoin mining and AI data centers. This initiative was revealed by the country’s Minister of State for Blockchain and Crypto, Bilal Bin Saqib, during the Bitcoin 2025 conference in Las Vegas. The move is inspired by the U.S. administration’s own plans for a strategic Bitcoin reserve, which aims to utilize the government’s holdings from criminal and civil forfeitures.

Bin Saqib emphasized that Pakistan’s strategic Bitcoin reserve will not be used for speculation or hype. Instead, the government intends to hold onto these Bitcoins indefinitely, mirroring the approach of the U.S. strategic reserve. This decision underscores Pakistan’s commitment to integrating cryptocurrency into its economic framework, aiming to leverage the technology for long-term benefits rather than short-term gains.

The allocation of 2,000 megawatts of electricity for Bitcoin mining and AI infrastructure is a significant step towards monetizing surplus electricity and attracting foreign investment. The energy will be sourced from three underused coal-powered plants at Sahiwal, China Hub, and Port Qasim, which are currently operating at just 15% of their capacity. This initiative is expected to generate substantial economic benefits, including job creation and revenue from unused power plants.

Finance Minister Muhammad Aurangzeb highlighted that the plan could attract massive foreign investment and position Pakistan as a global hub for data centers. The government hopes to leverage its strategic location as a digital bridge between Asia, Europe, and the Middle East, further enhancing its appeal to international investors. The decision to allocate 2,000 MW of electricity for Bitcoin mining and AI development comes at a time when Pakistan is facing economic challenges and significant international debt. The country recently secured a $2.1 billion loan package from the International Monetary Fund (IMF) to prevent economic default. However, the IMF has repeatedly warned against government involvement in Bitcoin, citing the financial risks it poses for countries with debt problems.

Despite these warnings, Pakistan’s move aligns with similar strategies adopted by other nations. For instance,

Salvador has continued to expand its Bitcoin reserves, holding over 6,000 Bitcoins worth $678 million, despite IMF pressure. Pakistan’s crypto push includes high-profile partnerships, with Binance co-founder Changpeng Zhao serving as an advisor to the Pakistan Crypto Council. Officials have also signed agreements with World Liberty Financial, a crypto project backed by associates of Donald Trump.

The initiative is part of a larger digital transformation strategy that includes the establishment of the Pakistan Digital Assets Authority to regulate crypto exchanges and digital wallets. This new agency will also handle the tokenization of government assets and debt. The government has promised tax holidays and duty exemptions for companies that invest in Bitcoin mining equipment, aiming to attract international mining operations to Pakistan. The success of this initiative will depend on Pakistan’s ability to attract foreign investment while managing its relationships with international lenders who oppose crypto adoption. Future phases of the digital transformation strategy will incorporate renewable energy sources, including solar, wind, and hydropower, to ensure sustainable growth. The move to establish a Bitcoin strategic reserve and allocate 2,000 MW of energy for crypto mining marks a significant milestone in Pakistan’s journey towards becoming a leader in digital innovation.