Pakistan is redirecting 2,000 megawatts of surplus electricity to fuel Bitcoin mining and artificial intelligence (AI) infrastructure, marking a bold leap into the digital economy. Announced on May 25, this initiative spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance aims to attract foreign investment, create jobs, and position the nation as a tech hub. With phased rollouts and regulatory reforms, officials promise a balance between innovation and sustainability.
Surplus Energy & Digital Ambitions
Pakistan’s power grids will channel unused electricity exclusively toward Bitcoin mining and AI data centres, according to a 24NewsHD TV Channel report. The move addresses a dual challenge: leveraging excess energy while tapping into high-demand tech sectors. Finance Minister Muhammad Aurangzeb emphasised the plan’s potential to generate “billions in foreign investment” and thousands of skilled jobs. Currently, coal-based power plants like Sahiwal and Port Qasim operate at just 15% capacity. By diverting surplus power, officials aim to convert wasted resources into economic opportunities. Aurangzeb called the strategy a “pivotal moment” in Pakistan’s digital transformation.
Phase One Targets Immediate Growth
The first phase focuses on allocating excess electricity to AI development and crypto mining operations. International Bitcoin miners and AI firms have already shown interest, with multiple delegations visiting Pakistan in recent months. Notably, tax incentives and duty exemptions sweeten the deal for investors. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, hailed the initiative as a “turning point.” He stressed that clear regulations and transparency could propel Pakistan into the global crypto arena. Furthermore, the government plans to monetise surplus energy through regulated mining rather than selling it at a loss.
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Renewables to Drive Phase Two Expansion
Phase two introduces renewable energy sources for mining operations, addressing environmental concerns linked to coal-based power. Officials aim to ensure sustainable growth without compromising Pakistan’s climate goals. This shift aligns with global trends, as major tech firms increasingly prioritise green energy. Additionally, the Africa-2 Cable Project, a 45,000-kilometre submarine internet line, will boost Pakistan’s digital infrastructure. Enhanced connectivity supports AI and blockchain projects, making the country more competitive against hubs like Singapore.
Tax Breaks and Reforms Lure Investors
To attract global players, the Ministry of Finance unveiled tax incentives for AI centres and duty exemptions for crypto miners. Reports suggest Binance CEO Changpeng Zhao (CZ) is advising the Pakistan Crypto Council, adding credibility to the initiative. The newly formed Pakistan Digital Assets Authority (PDAA) will regulate blockchain projects, tokenise national assets, and oversee crypto exchanges. Saqib, who proposed using surplus energy for mining in March, argued these steps create a “transparent framework” for investors.
Crypto Adoption Hits Record Highs
Pakistan ranks ninth globally in Chainalysis’ 2024 crypto adoption index, driven by retail users and centralised platforms. Statista estimates crypto users will exceed 27 million by 2025, over 10% of the population. This growth, paired with progressive policies, positions Pakistan as a rising crypto powerhouse. The PDAA’s mandate includes monetising surplus power through Bitcoin mining and aiding blockchain startups. Officials also plan to accumulate Bitcoin in a national wallet, signalling confidence in digital assets.
Global Partnerships
Foreign investors are flocking to explore partnerships, drawn by low energy costs and strategic location. Pakistan’s role as a digital bridge between Asia, Europe, and the Middle East enhances its appeal. Delegations from leading mining and AI firms have already toured facilities. Finance Minister Aurangzeb confirmed plans for a “national digital asset strategy,” including tokenised government debt. With improved infrastructure and investor-friendly policies, Pakistan aims to rival regional tech giants.
A New Chapter for Pakistan’s Economy
By transforming energy surplus into digital innovation, Pakistan is rewriting its economic narrative. The convergence of AI, blockchain, and renewables could unlock unprecedented growth and position the nation as a 21st-century tech trailblazer. As global interest surges, the world watches to see if this gamble pays off.
Written By Fazal Ul Vahab C H
