Pakistan has allocated 2.000 megawatts of surplus electricity for exclusive use in Bitcoin mining and artificial intelligence centers. The move is part of a broader digital transformation plan led by the Pakistan Crypto Council and supported by the Ministry of Finance, as reported on May 25 by local news organization 24NewsHD TV Channel.
In the first phase of this initiative, the government plans to channel surplus energy into artificial intelligence infrastructure and crypto mining operations. Finance Minister Muhammad Aurangzeb has indicated that this move is expected to attract billions in foreign investment while generating advanced employment opportunities across the country.
The second phase of the initiative will provide access to renewable energy for mining operations, with the aim of balancing growth with environmentally friendly practices.
According to the report, the interest of international Bitcoin (BTC) miners and AI companies have already increased. Official sources confirmed that several foreign delegations have visited Pakistan in recent months to explore potential collaborations.
To further encourage investment, the Ministry of Finance has announced a package of tax breaks for AI centers and import duty waivers for Bitcoin miners. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, welcomed the developments, calling it a “crossroads” for the country’s digital economy.
Saqib asserted that with clear regulations and a transparent framework, Pakistan can become a major player in the global crypto and AI sectors. He proposed using the country’s surplus energy for Bitcoin mining during the first meeting of the Crypto Council on March 21, which was also attended by lawmakers, the Governor of the Bank of Pakistan, the Chairman of the Pakistan Securities and Exchange Commission (SECP), and the Federal Minister of Information Technology.
On May 21, the Ministry of Finance approved the creation of a special body to regulate blockchain-related financial infrastructure in the country. The Pakistan Digital Assets Authority (PDAA) will serve as a regulatory body responsible for licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.
The PDAA will also be tasked with tokenizing national assets and government debt, facilitating the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and supporting startups in developing scalable blockchain solutions. Pakistan achieved a high ranking in Chainalysis’ 2024 Crypto Adoption Index, where it ranked ninth, largely due to strong retail adoption and transactions on centralized services.
Data from Statista also shows that the crypto market in Pakistan is experiencing “rapid growth”, with an estimated 27 million+ crypto users by 2025, out of a total population of 247 million.
Pakistan is making significant strides in the digital transformation of its economy, with a clear focus on harnessing surplus energy for innovative technologies. The initiatives surrounding Bitcoin mining and AI can not only attract foreign investment but also promote sustainable economic growth in an emerging market. The establishment of the Pakistan Digital Assets Authority will further strengthen regulation in the sector, thereby increasing the country’s potential in the global crypto and AI industries.
What benefits does Pakistan offer to crypto companies?
Pakistan offers tax breaks and import duty exemptions to Bitcoin miners and AI centers, encouraging foreign investment.
What is the role of the Pakistan Digital Assets Authority?
The PDAA regulates and licenses various blockchain and crypto-related activities, including exchanges and decentralized finance applications.
How Many Crypto Users Are Expected in Pakistan by 2025?
The number of crypto users in Pakistan is estimated to exceed 27 million by 2025, underscoring the growth of the sector.