Pakistan Allocates 2,000 MW of Power for Bitcoin Mining and AI Facilities
Pakistan has designated 2,000 megawatts of surplus electricity specifically for Bitcoin mining and artificial intelligence centers.
This initiative is part of a broader digital transformation strategy led by the Pakistan Crypto Council, with support from the Ministry of Finance, as reported by local news outlet 24NewsHD TV Channel on May 25.
In the initial phase, the government intends to direct excess power toward AI infrastructure and cryptocurrency mining ventures. Finance Minister Muhammad Aurangzeb noted that this decision is projected to attract billions in foreign investment and create high-tech job opportunities nationwide.
The second phase of the initiative will focus on providing access to renewable energy for mining operations, striving to harmonize growth with environmental sustainability.
Related: Trump-backed World Liberty Financial collaborates with Pakistan Crypto Council
Pakistan introduces tax incentives to attract investors
According to the report, there has been a surge of interest from international Bitcoin (BTC) miners and AI companies. Officials confirmed that several foreign delegations have visited Pakistan recently to investigate potential partnerships.
To further promote investment, the Ministry of Finance has introduced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners.
Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, expressed optimism about this development, describing it as a “turning point” for the country’s digital economy.
Saqib stated that with clear regulations and a transparent framework, Pakistan has the potential to become a key player in the global crypto and AI markets.
Saqib initially proposed utilizing the country’s runoff energy for Bitcoin mining during the Crypto Council’s first meeting on March 21.
This meeting included lawmakers, the Governor of the Bank of Pakistan, the Chairman of Pakistan’s Securities and Exchange Commission (SECP), and the federal information technology secretary.
Related: Pakistan suggests compliance-based crypto regulatory framework — Report
Pakistan establishes Digital Asset Authority
On May 21, the Ministry of Finance approved the formation of a dedicated entity to regulate blockchain-based financial infrastructure in the country.
The Pakistan Digital Assets Authority (PDAA) will function as a regulatory body overseeing the licensing and regulation of exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.
The PDAA will also focus on tokenizing national assets and government debt, facilitating the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and assisting startups in developing blockchain-based solutions on a larger scale.
Pakistan ranked prominently in Chainalysis’ 2024 crypto adoption index, securing the ninth position, mainly due to robust retail adoption and transactions via centralized services.
Pakistan placed highly in Chainalysis’ 2024 crypto adoption index, standing at 9th. Source: Chainalysis
Data from Statista also indicates that Pakistan’s crypto market is “experiencing rapid growth,” with estimates suggesting the number of crypto users will exceed 27 million by 2025, out of a population of 247 million.
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