Nation seeks to monetize surplus electricity and attract foreign investment through strategic digital infrastructure development.
Key Takeaways:
i) Pakistan has initially allocated 2,000 megawatts (MW) of surplus electricity for Bitcoin mining and Artificial Intelligence (AI) data centers, aiming to monetize unused energy capacity.
ii) This initiative is a core part of Pakistan’s broader national strategy to boost its digital economy, attract foreign direct investment, and create high-tech employment opportunities.
iii) The move is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body, signaling a proactive approach towards integrating emerging technologies into the country’s economic framework.
Money Matters Monitoring – In a significant move towards digital transformation, Pakistan has announced the allocation of 2,000 megawatts (MW) of electricity for Bitcoin mining and artificial intelligence (AI) data centers. This strategic decision, reported by various media outlets including Cointelegraph and based on statements from the Pakistan Crypto Council and Finance Ministry, aims to leverage the nation’s surplus energy capacity for economic growth and technological advancement.
The initiative, spearheaded by the Pakistan Crypto Council (PCC), a government-backed body under the Ministry of Finance, seeks to transform underutilized power into a high-value economic asset. According to Finance Minister Senator Muhammad Aurangzeb, this marks “a pivotal moment in Pakistan’s digital transformation journey,” turning excess energy into “innovation, investment, and international revenue.”
Bilal Bin Saqib, CEO of the Pakistan Crypto Council and an advisor to the Finance Minister, has been a key proponent of this strategy. He has reportedly held discussions with several international mining firms to attract investment. As per reports from Reuters, Saqib stated, “We welcome companies to visit Pakistan to evaluate for Bitcoin mining.” This allocation represents the first phase of a broader, multi-stage rollout of digital infrastructure.
Pakistan’s energy sector has grappled with challenges, including high electricity tariffs and surplus generation capacity. The rapid expansion of solar energy has further contributed to this surplus, as more consumers turn to alternative energy sources. By repurposing this excess power, particularly from underutilized plants, into energy-intensive operations like AI and crypto mining, the government aims to generate foreign exchange in U.S. dollars.
The government is also reportedly considering tax exemptions and other incentives to facilitate the development of AI and blockchain infrastructure.
Beyond energy monetization, the initiative is expected to attract significant foreign investment and create thousands of high-tech jobs in engineering, IT, and data sciences. Pakistan’s strategic geographic location, serving as a bridge between Asia, Europe, and the Middle East, along with its expanding digital infrastructure and a large, digitally engaged population, positions it as a potential global hub for data centers and digital innovation. The Finance Ministry highlighted that while global AI data center demand has soared, supply remains significantly lower, creating an “unprecedented opportunity” for countries with surplus power like Pakistan.
The government is also reportedly considering tax exemptions and other incentives to facilitate the development of AI and blockchain infrastructure, potentially easing income tax and import tariffs for companies investing in these sectors. Furthermore, the second phase of this initiative is expected to focus on introducing access to renewable energy sources for mining operations, aligning with global trends towards green computing.
