Pakistan allocates 2,000MW for bitcoin mining

KARACHI, May 25 (Arab News): The Pakistani government has allocated 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and Artificial Intelligence (AI) data centres, the finance ministry announced on Sunday, in a push to transform Pakistan into a global leader in digital innovation.
The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body under the Ministry of Finance, as part of a broader strategy to monetize surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment.
Pakistan is uniquely positioned, both geographically and economically, to become a global hub for data centers, and offers the most strategic location in the world for data flow and digital infrastructure as a bridge between Asia, Europe, and the Middle East.
Pakistan's combination of surplus power, geographic advantage, advanced subsea cable connectivity, renewable energy potential, and a large, digitally engaged population creates a compelling case for becoming a regional epicenter of Web3, AI, and digital innovation.
"This strategic allocation marks a pivotal moment in Pakistan's digital transformation journey, unlocking economic potential by turning excess energy into innovation, investment, and international revenue," Finance Minister Muhammad Aurangzeb was quoted as saying by his ministry.
Since the inception of the PCC, there has been tremendous interest from global bitcoin miners and data infrastructure companies, and several international firms have already visited Pakistan for exploratory discussions, according to the finance ministry. Following this landmark announcement, more global players are expected to visit in the coming weeks.
It said Pakistan's underutilized power generation capacity is now being repurposed into a high-value digital asset.
"AI data centers and Bitcoin mining operations, known for their consistent and heavy energy usage, provide an ideal use case for this surplus," the ministry 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."
PCC CEO Bilal bin Saqib emphasized the transformative nature of this initiative, saying Pakistan could become a global crypto and AI powerhouse with proper regulation, transparency, and international collaboration.
"This energy-backed digital transformation not only unlocks high-value investment but enables the government to generate foreign exchange in USD through bitcoin mining," he said.
"Additionally, as regulations evolve, Pakistan can accumulate bitcoin directly into a national wallet, marking a monumental shift from selling power in Pakistani Rupees (PKR) to leveraging digital assets for economic stability."
In April, Pakistan introduced its first-ever policy framework to regulate virtual assets and service providers, aligning with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF). The move followed the establishment of the PCC in March to create a legal framework for cryptocurrency trading in a bid to lure international investment.
With the right incentives, strategic investments, and collaborative partnerships, Pakistan is positioning itself not only as a destination for global digital infrastructure but also as a sovereign economy that can accumulate digital assets, export digital services, and lead in the next generation of technological transformation.