Pakistan has recently made headlines by allocating 2,000 megawatts of surplus electricity specifically for Bitcoin mining and artificial intelligence centers. This strategic initiative is part of a comprehensive digital transformation plan led by the Pakistan Crypto Council and supported by the Ministry of Finance, according to a report from 24NewsHD TV Channel dated May 25.
The initial phase of this project seeks to channel excess power towards enhancing AI infrastructure alongside cryptocurrency mining operations. Finance Minister Muhammad Aurangzeb expressed optimism about the plan, suggesting that it will not only attract billions in foreign investments but also create high-tech jobs across the country.
In a follow-up phase, the initiative will prioritize access to renewable energy sources for mining operations, promoting an environmentally responsible approach in tandem with technological growth.
Tax Incentives to Attract Investors
Interest from international Bitcoin miners and AI firms is mounting, as evidenced by multiple foreign delegations visiting Pakistan in recent months to investigate potential investment opportunities. To further enhance this appeal, the Ministry of Finance has introduced a package of tax incentives for AI centers while also providing duty exemptions for Bitcoin miners.
Bilal Bin Saqib, the CEO of Pakistan’s Crypto Council, heralded this development as a transformative moment for the nation’s digital economy. He emphasized that with well-defined regulations and a transparent framework, Pakistan could rise to prominence within the global crypto and AI landscapes.
Saqib’s vision includes utilizing the country’s runoff energy—first proposed during the inaugural meeting of the Crypto Council on March 21—to propel Bitcoin mining efforts, a meeting also attended by lawmakers and central bank officials.
Establishment of the Digital Asset Authority
In a parallel effort, on May 21, the Ministry of Finance endorsed the creation of the Pakistan Digital Assets Authority (PDAA). This newly established regulatory body will be responsible for overseeing blockchain-based financial activities, including the licensing and regulation of exchanges, custodians, wallets, and decentralized finance applications.
The PDAA is tasked with tokenizing national assets and government debts, thus facilitating the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining. Furthermore, it aims to support startups in developing scalable blockchain solutions.
Recently, Pakistan also garnered recognition in the 2024 crypto adoption index by Chainalysis, coming in ninth primarily due to robust retail adoption and heightened transaction activity within centralized services.
Market data from Statista indicates that Pakistan’s crypto sector is rapidly expanding, with projections estimating over 27 million crypto users by 2025, amidst a growing population base of 247 million.
This multi-faceted strategy exemplifies Pakistan’s commitment to becoming a key player in the digital economy, balancing innovation with sustainable practices while positioning itself favorably on the global stage.
