Pakistan Boosts Bitcoin Mining with 2,000 MW Power Allocation
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The government of Pakistan has taken an unexpected step to utilize its excess electricity. It has designated 2,000 megawatts of surplus energy for Bitcoin mining and AI development centers.
This initiative aims to convert an energy surplus into economic growth. It is part of a broader strategy supported by the Finance Ministry and advocated by the Pakistan Crypto Council.
Allocation of Surplus Power
As per local sources, Pakistan’s energy grid frequently generates more power than required. The excess energy is now set to power data centers and mining operations.
The initial phase will begin immediately, focusing on supplying energy to AI centers and crypto farms. Officials believe this could attract billions in foreign investment and create tech jobs in cities and towns nationwide.
Pakistan’s Finance Ministry has declared that it will allocate 2,000 megawatts of surplus energy to facilitate Bitcoin mining and AI development as part of its national digital advancement strategy. The government is also providing tax incentives to lure foreign companies, with several…
— Wu Blockchain (@WuBlockchain) May 25, 2025
Investment and Tax Benefits
Reports indicate that the Finance Ministry has introduced specific tax incentives for AI facilities. Bitcoin miners will also benefit from duty-free imports of their equipment. Currently, foreign delegations are visiting Pakistan to explore potential partnerships for hardware, software, and data-center resources.
Finance Minister Muhammad Aurangzeb assured reporters that clear regulations and incentives would position Pakistan as an attractive destination for tech investors.
BTC is currently valued at $107,616. Chart: TradingView
Establishing a Regulatory Body
The government is in the process of creating a Pakistan Digital Assets Authority. This authority will oversee the licensing and regulation of exchanges, wallets, and token platforms, while monitoring stablecoins, DeFi applications, and other blockchain-related services.
The digital assets authority also plans to “tokenize” national assets and public debt, with future management of surplus electricity for mining being meticulously tracked and audited.
Addressing Environmental Concerns
The second phase of this initiative introduces an eco-friendly approach. Officials are committed to utilizing renewable sources, such as solar and wind energy, for mining processes to mitigate carbon emissions and alleviate public concerns.
Pakistan already grapples with air quality challenges in major urban areas. Redirecting mining operations towards renewable energy sources is expected to reduce thermal plant fuel usage and balance energy demands.
In global standings, Pakistan secured the ninth position in the 2024 Chainalysis crypto adoption index. According to Statista data, the nation is projected to exceed 27 million crypto users by 2025, representing over 10% of its population of 247 million. These statistics highlight a rapidly expanding market of retail investors and institutional players alike.
However, analysts warn that excessive mining may strain local grids if not properly managed, and they reference potential Bitcoin price volatility, which could turn a lucrative venture into a financial gamble.
Featured image from Unsplash, chart from TradingView
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