Pakistan Allocates 2,000MW for Bitcoin Mining & AI Centers

Pakistan Allocates 2,000MW Power for Bitcoin Mining and AI Centers

Pakistan has officially allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence (AI) centers, as part of a major digital transformation initiative. This plan, led by the Pakistan Crypto Council and backed by the Ministry of Finance, aims to attract foreign investment and accelerate the country’s entry into the global digital economy, according to a May 25 report by local news outlet 24NewsHD TV Channel.

In the first phase, the government plans to channel excess power directly into AI infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb stated that the move is expected to bring billions in foreign investment and create high-tech job opportunities across the nation.

The second phase will focus on integrating renewable energy into mining operations, ensuring environmental sustainability alongside rapid technological growth.

Tax Incentives to Attract Global Players

Interest from international Bitcoin miners and AI companies has already increased, with several foreign delegations visiting Pakistan recently to explore potential partnerships. To strengthen investor confidence, the Ministry of Finance has rolled out tax incentives for AI centers and duty exemptions for Bitcoin miners.

Pakistan ranked highly in Chainalysis’ 2024 crypto adoption index, coming in 9th. Source: Chainalysis

Bilal Bin Saqib, CEO of the Pakistan Crypto Council, hailed the development as a “turning point” for Pakistan’s digital economy. Saqib originally proposed using the country’s runoff energy for Bitcoin mining during the Council’s inaugural meeting on March 21, attended by key government and financial leaders.

Establishment of the Pakistan Digital Assets Authority

On May 21, the Ministry of Finance approved the creation of the Pakistan Digital Assets Authority (PDAA), a regulatory body tasked with overseeing the country’s blockchain ecosystem. The PDAA will handle licensing for exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance (DeFi) applications.

The PDAA will also lead efforts to tokenize national assets and government debt, helping Pakistan monetize its surplus electricity through regulated Bitcoin mining while supporting blockchain startups to scale their innovations.

According to Chainalysis, Pakistan ranks ninth globally in crypto adoption, driven largely by strong retail activity. Meanwhile, Statista projects Pakistan’s crypto user base will surpass 27 million by 2025, reflecting the country’s rapid embrace of digital assets amid a population of 247 million.