Pakistan has embarked on a groundbreaking initiative, allocating a substantial 2,000 megawatts of surplus electricity specifically for Bitcoin mining and artificial intelligence centers. This strategic move is a pivotal part of a comprehensive digital transformation plan championed by the Pakistan Crypto Council, in collaboration with the Ministry of Finance, as reported by local news outlet 24NewsHD TV Channel.
In the initial phase of this ambitious project, the government aims to direct excess power towards bolstering AI infrastructure and supporting crypto mining operations. Finance Minister Muhammad Aurangzeb expressed optimism that this decision would not only attract significant foreign investment but also create high-tech employment opportunities across Pakistan. The subsequent phase of the initiative is set to introduce access to renewable energy sources for mining operations, demonstrating a commitment to sustainable growth practices.
The announcement has already garnered interest from international Bitcoin miners and AI companies, with reports confirming visits from multiple foreign delegations keen on exploring potential partnerships in Pakistan. To further entice investors, the Ministry of Finance unveiled a package of tax incentives for AI centers and duty exemptions for Bitcoin miners, signaling a favorable environment for digital innovation and investment in the country.
Bilal Bin Saqib, the CEO of Pakistan's Crypto Council, hailed the move as a significant milestone for the nation's digital economy, emphasizing the potential for Pakistan to emerge as a key player in the global crypto and AI sectors. Saqib initially proposed the utilization of Pakistan's surplus energy for Bitcoin mining during the Crypto Council's inaugural meeting in March, which brought together key stakeholders including lawmakers, the governor of the Bank of Pakistan, the chairman of Pakistan's Securities and Exchange Commission (SECP), and the federal information technology secretary.
In a parallel development, Pakistan's Ministry of Finance recently endorsed the establishment of the Pakistan Digital Assets Authority (PDAA), a dedicated regulatory body tasked with overseeing blockchain-based financial infrastructure in the country. The PDAA will be responsible for licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications. Additionally, the authority will play a pivotal role in tokenizing national assets and government debt, facilitating the regulated mining of Bitcoin using surplus electricity, and supporting startups in developing scalable blockchain solutions.
Pakistan's proactive stance towards digital innovation has earned it recognition in global crypto adoption indices, with Chainalysis ranking the country ninth in its 2024 report. Data from Statista further underscores the country's burgeoning crypto market, projecting over 27 million crypto users in Pakistan by 2025, out
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