2,000MW Allocated: Pakistan dedicates 2,000 megawatts of surplus electricity to Bitcoin mining and AI data centers.
Foreign Investment Surge: Initiative expected to attract multi-billion-dollar foreign investments and create high-tech jobs.
Renewable Integration Planned: Phase two includes incorporating renewable energy sources like solar and wind.
Tax Incentives Introduced: Government offers tax breaks and duty exemptions to encourage investment in digital infrastructure.
The Bitcoin-focused initiative, driven by the Pakistan Crypto Council and supported by the Ministry of Finance, was reported by 24NewsHD on May 25th. It is part of a broader vision to accelerate the country’s adoption of emerging technologies and attract substantial foreign investment.
In the first phase of the project, Pakistan will direct its excess power supply toward establishing infrastructure for AI operations and crypto mining farms. According to Finance Minister Muhammad Aurangzeb:
“The decision is expected to spark multi-billion-dollar foreign investments and generate a wave of high-tech job opportunities throughout the country.”
Pakistan’s Federal Minister For Finance & Revenue, Muhammad Aurangzeb
Source: Pakistan Ministry Of Finance
Mr. Aurangzeb believes the use of surplus electricity, often wasted or underutilized, presents a cost-effective and resource-efficient approach to modernizing the country’s digital ecosystem.
Pakistan’s finance leadership sees the move as an opportunity to leverage digital assets and AI technologies to drive sustainable economic development. The government hopes to transform idle energy into an economic engine through scalable infrastructure investments and skilled job creation.
In the second phase of the initiative, the focus will shift toward incorporating renewable energy sources into the crypto and AI ecosystems. This approach aims to ensure environmental sustainability, reducing the carbon footprint often associated with large-scale mining operations.
As part of this phase, the government is expected to incentivize the use of solar, wind, and hydropower solutions to keep mining operations green. With climate concerns growing globally, Pakistan’s strategy to balance growth with sustainability could set an example for other developing nations.
The move has already started to draw attention from international crypto miners and AI firms, with several foreign delegations reportedly visiting Pakistan in recent months to explore partnerships.
Bitcoin Archive Announcing Pakistan’s Decision
Source: X (@BTC_Archive)
To further encourage investment, the Ministry of Finance has rolled out an attractive tax incentive package. This includes tax breaks for AI centers and duty exemptions for Bitcoin miners, making Pakistan an even more appealing destination for tech firms and investors.
The idea to use the country’s runoff electricity for Bitcoin mining was first tabled by Saqib during the inaugural Crypto Council meeting on March 21st. Attendees at the meeting included key stakeholders such as:
This early consensus has now evolved into a full-fledged national plan.
In a closely related development, the Ministry of Finance has also approved the creation of the Pakistan Digital Assets Authority (PDAA). The PDAA will serve as the primary regulatory body for the country’s growing blockchain infrastructure.
The PDAA will be tasked with licensing and regulating:
The authority will also explore the tokenization of national assets and government debt, creating new avenues for public sector monetization and innovation.
Pakistan has already made a mark on the global crypto map. According to Chainalysis’ 2024 Global Crypto Adoption Index, the country ranked 9th worldwide, driven by robust retail usage and growing engagement with centralized services.
Pakistan’s Ranking In Chainalysis’ 2024 Crypto Adoption Index
Source: Chainalysis
Data from Statista further highlights this momentum. The platform estimates that Pakistan’s crypto user base will surpass 27 million by 2025, from a total population of approximately 247 million.
Pakistan’s commitment to investing surplus electricity into Bitcoin mining and AI development is a massive step in the right direction, particularly in the context of digital sovereignty and economic resilience.
As regulatory clarity improves and sustainable practices are embedded, Pakistan may not just catch up with global trends, but potentially lead them in the years to come.
What is the Pakistan Digital Assets Authority (PDAA)?
The PDAA is the newly established regulatory body overseeing the country’s blockchain infrastructure, including digital asset exchanges, crypto custodians, and DeFi applications.
How does Pakistan plan to integrate renewable energy into crypto mining?
The second phase of the initiative focuses on incorporating renewable energy sources such as solar, wind, and hydropower into the crypto and AI ecosystems to ensure environmental sustainability.
What tax incentives has the Pakistani government introduced for tech firms?
The Ministry of Finance has introduced tax breaks for AI centers and duty exemptions for Bitcoin miners to encourage investment in digital infrastructure.
How many crypto users are there in Pakistan?
According to Statista, Pakistan’s crypto user base is estimated to surpass 27 million by 2025.
Who is Bilal Bin Saqib?
Bilal Bin Saqib is the CEO of the Pakistan Crypto Council and an adviser to the Finance Minister.
Subscribe to stay informed and receive latest updates on the latest happenings in the crypto world!
Content Strategist
Subscribe to stay informed and receive latest updates on the latest happenings in the crypto world!
