Pakistan is making a bold move toward embracing digital innovation by allocating 2,000 megawatts of surplus electricity specifically for Bitcoin mining and artificial intelligence (AI) data centers. The initiative is part of a national digital transformation plan led by the Pakistan Crypto Council and supported by the Ministry of Finance, according to a May 25 report by local broadcaster 24NewsHD TV Channel.

In the initial phase, the government will divert excess power toward building AI infrastructure and crypto mining facilities. Finance Minister Muhammad Aurangzeb stated that the strategy could attract billions of dollars in foreign investment and create thousands of high-tech jobs across the country.

To ensure sustainable development, the second phase of the initiative will incorporate renewable energy sources into the mining process, aiming to minimize environmental impact while boosting Pakistan’s role in the global digital economy.

Tax Incentives and Regulatory Reforms

The government is also rolling out a comprehensive package of financial incentives to draw interest from global tech investors. These include tax breaks for AI centers and import duty exemptions for Bitcoin miners. As a result, international companies have already begun visiting Pakistan to explore potential partnerships.

Bilal Bin Saqib, CEO of the Pakistan Crypto Council, hailed the announcement as a “turning point” for the country’s digital economy. Saqib has been a vocal proponent of using the country’s excess electricity for crypto mining and first introduced the idea during the Council’s inaugural meeting on March 21. The meeting included top officials such as the State Bank of Pakistan’s governor, the SECP chairman, and the federal IT secretary.

In a further show of support, the country’s Ministry of Finance endorsed the establishment of the Pakistan Digital Assets Authority (PDAA) on May 21. The PDAA will regulate blockchain-related financial infrastructure, including exchanges, wallets, stablecoins, and tokenized platforms. It will also oversee the monetization of surplus electricity through regulated Bitcoin mining and help startups scale blockchain-based solutions.

Pakistan Eyes Leading Role in Digital Finance

Pakistan’s recent efforts to formalize its crypto sector align with its strong performance on the global stage. The country ranked ninth in Chainalysis’ 2024 Global Crypto Adoption Index, driven primarily by high retail participation.

According to Statista, the number of crypto users in Pakistan is projected to surpass 27 million by 2025, highlighting the sector’s rapid growth in a population of 247 million. With infrastructure, incentives, and regulation all moving into place, Pakistan appears poised to become a major hub in the digital asset and AI landscape.

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