Pakistan has committed 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence (AI) infrastructure, as part of an ambitious push to become a regional tech leader. The announcement was made on May 25 by local outlet 24NewsHD and forms part of a national digital strategy led by the Pakistan Crypto Council and endorsed by the Ministry of Finance.
In the initial rollout, the government will direct unused power into high-performance data centers for AI and crypto mining. Finance Minister Muhammad Aurangzeb emphasized that this move is designed to attract foreign investment and create a new wave of high-tech employment opportunities across the country.
The second phase of the plan will focus on sustainability, with the integration of renewable energy sources to reduce the environmental impact of mining operations. Already, global interest is rising, with multiple international crypto and AI firms having visited Pakistan recently to assess potential partnerships and expansion.
To sweeten the deal for investors, the Ministry of Finance has introduced tax incentives for AI centers and customs duty exemptions on equipment used in Bitcoin mining.
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, welcomed the decision as a “milestone” in Pakistan’s economic modernization. He had originally proposed the idea of utilizing excess electricity for mining during the Council’s inaugural session on March 21, which included top government officials and regulatory heads.
In a parallel move to support this digital shift, the Ministry of Finance has approved the establishment of the Pakistan Digital Assets Authority (PDAA). This new regulatory body will oversee the licensing and compliance of digital asset platforms, including exchanges, wallets, tokenized products, and DeFi services. It will also support tokenization of national assets and help monetize the country’s surplus electricity through regulated mining.
Pakistan, ranked ninth in Chainalysis’ 2024 Global Crypto Adoption Index, continues to see explosive growth in its digital asset market, with Statista projecting over 27 million crypto users in the country by 2025.
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