Pakistan has announced it will allocate 2,000 megawatts of electricity to power Bitcoin mining and artificial intelligence data centers. The government makes this decision to monetize surplus electricity and attract foreign tech investment.
The project is led by the newly launched Pakistan Crypto Council (PCC), which was set up in March under the Ministry of Finance. With legal reforms and international partnerships underway, the initiative signals a clear change in Pakistan’s approach to digital finance and infrastructure.
Read also: The Pakistan Crypto Council Launched to Join the Global Crypto Adoption Race
Table of Contents
Strategic Energy Use for Economic Growth
The Pakistani government’s plan follows recent decisions to legalize cryptocurrency within its borders, reversing previous bans. The aim is to attract international interest and investment into the country’s digital economy. To oversee this effort, entrepreneur Bilal Bin Saqib was appointed chief adviser to the finance minister, specifically focusing on the PCC’s activities.
Finance Minister Muhammad Aurangzeb described this allocation as a turning point. He said:
“Pakistan is uniquely positioned – both geographically and economically – to become a global hub for data centres. As a digital bridge between Asia, Europe, and the Middle East, Pakistan offers the most strategic location in the world for data flow and digital infrastructure.”
The 2,000 MW set aside will be used in facilities that require steady, high-energy consumption. These include AI data centers and Bitcoin mining operations, which are seen as suitable consumers of surplus electricity from underutilized power plants.
In addition, the country recently benefited from the landing of the world’s largest submarine internet cable – the Africa-2 Cable Project. This 45,000-kilometer network connects 33 countries through 46 landing stations and has now reached Pakistan. With this development, the country gains improved internet resilience and bandwidth.
Global Giants Eye Pakistan
According to the Finance Division, several global companies involved in data infrastructure and Bitcoin mining have already visited Pakistan to evaluate opportunities. Following the announcement, more foreign delegations are expected to explore potential projects. These companies see Pakistan’s electricity surplus as an asset rather than a liability. The government’s statement said:
“Redirecting idle energy, especially from plants operating below capacity, allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity.”
By offering affordable energy in large supply, Pakistan makes itself more competitive than regional players such as India and Singapore, where high land and electricity costs hinder similar expansion.
Bilal Bin Saqib remarked that with regulation, transparency, and international cooperation, Pakistan has the chance to become a significant participant in the global crypto and AI sectors. Notably, Pakistan placed ninth in Chainalysis’ 2024 crypto adoption index, mostly because of strong retail use and activity on centralized platforms.
IMF Concerns Do Not Deter Government Strategy
Pakistan’s move into digital assets comes at a time when it has secured a $2.1 billion loan package from the International Monetary Fund (IMF). Despite warnings from the IMF regarding the financial risks of state involvement in Bitcoin, the government is proceeding.
Mathew Sigel, head of research at VanEck, has said that other countries such as El Salvador, Kenya, Ethiopia, and Argentina have taken similar steps while under IMF agreements. El Salvador, for instance, has built its own national Bitcoin reserves, currently holding more than 6,000 BTC worth around $678 million. Pakistan now aims to follow a similar path, albeit at an early stage.
As regulation becomes more defined, there are plans for the country to accumulate Bitcoin in a national wallet. This would allow the conversion of energy sales from rupees into a globally traded digital currency, reducing currency volatility risks and potentially increasing foreign exchange reserves.
Read also: Kyrgyzstan to Launch Gold-Backed Stablecoin in Historic Binance Deal
