In an ambitious move to bolster its digital economy, Pakistan has earmarked 2,000 megawatts of surplus electricity for Bitcoin mining and artificial intelligence centers. This groundbreaking initiative, announced on May 25 and spearheaded by the Pakistan Crypto Council with backing from the Ministry of Finance, marks a significant step in the country’s digital transformation journey.
A New Dawn for Pakistan’s Crypto and AI Sectors
The first phase of this plan focuses on diverting excess power to AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb expressed optimism, suggesting that the initiative could attract billions in foreign investment and generate high-tech jobs across Pakistan. Aurangzeb’s vision is clear: transform Pakistan into a hub for emerging technologies while leveraging its untapped energy resources. As explored in our recent coverage of AI-powered court systems, the integration of AI into various sectors is becoming increasingly prevalent, further underscoring the potential impact of Pakistan’s initiative.
Interest is already swelling from international Bitcoin miners and AI firms, with several foreign delegations visiting Pakistan recently to explore potential partnerships. To sweeten the deal, the Ministry of Finance has unveiled tax incentives for AI centers and duty exemptions for Bitcoin miners. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, heralded the development as a “turning point” for the nation’s digital economy, underscoring the potential for Pakistan to become a significant player in global crypto and AI sectors with proper regulatory frameworks in place.
Environmental and Economic Balancing Act
Pakistan’s strategy doesn’t stop at merely harnessing its surplus electricity. The second phase aims to integrate renewable energy sources into mining operations, reflecting a commitment to sustainable growth. This dual focus on economic expansion and environmental responsibility seems to be a calculated effort to align with global trends towards greener energy solutions in the tech industry.
Saqib’s initial proposal to utilize the country’s runoff energy for Bitcoin mining was first tabled at the Crypto Council’s inaugural meeting on March 21. The meeting brought together key stakeholders, including lawmakers, the governor of the Bank of Pakistan, and the chairman of Pakistan’s Securities and Exchange Commission (SECP), signaling broad governmental support for this initiative.
Regulatory Frameworks and Future Prospects
In a parallel move to ensure the sector’s orderly development, Pakistan’s Ministry of Finance has approved the establishment of the Pakistan Digital Assets Authority (PDAA). The PDAA will regulate blockchain-based financial infrastructure, overseeing licensing and regulation of exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications. It will also focus on tokenizing national assets and government debt, providing a robust framework for further monetizing Pakistan’s surplus electricity through regulated Bitcoin mining. This follows a pattern of addressing crypto fragmentation, as detailed in our analysis of multi-wallet usage and AI solutions.
Pakistan’s crypto market is already on a rapid growth trajectory, with over 27 million users projected by 2025, according to Statista. The country ranked ninth in Chainalysis’ 2024 crypto adoption index, driven by strong retail adoption and centralized service transactions—indicating a fertile ground for digital asset expansion.
Into the Future
As Pakistan steps boldly into the digital future, questions remain about the sustainability and scalability of these initiatives. Can Pakistan maintain the momentum and navigate the complexities of global crypto and AI landscapes? With the PDAA laying down regulatory tracks, the country is poised to harness its energy resources and digital prowess to carve out a prominent place in the tech-driven world. But as always in the realm of innovation, the path ahead is both promising and unpredictable.
Source
This article is based on: Pakistan allocates 2,000MW power for Bitcoin mining and AI centers
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
