Main Points:
- Pakistan earmarks 2,000 MW of surplus electricity for bitcoin mining and AI operations
- Initiative led by the Pakistan Crypto Council (PCC) under the Finance Ministry
- Aims to convert under-utilized energy into revenue, jobs, and foreign investment
- Plans include renewable-powered data centers and upgraded submarine cable infrastructure
- Regulatory gaps in cryptocurrency law pose challenges; tax incentives and clarity forthcoming
- Potential for Pakistan to emerge as a regional data-center hub connecting Asia, Europe, and the Middle East
1. Background and Rationale
In late May 2025, Pakistan’s Finance Ministry announced the allocation of 2,000 megawatts (MW) of electricity to support bitcoin mining and artificial intelligence (AI) data centers, marking the first phase of a multi-stage national digital strategy. The country faces a paradoxical energy challenge: persistent high electricity tariffs combined with surplus generation capacity, driven in part by rapid solar adoption. Redirecting idle power from under-loaded plants toward data-intensive industries promises to turn a financial liability into a sustainable revenue stream.
By leveraging its surplus energy, Pakistan seeks not only to bolster its balance of payments through bitcoin mining revenue but also to stimulate high-value technology investment. The government views this as a pivotal moment in its digital transformation journey, aiming to build both domestic capacity and international partnerships in blockchain and AI.
2. Government Strategy and Stakeholder Statements
Finance Minister Muhammad Aurangzeb emphasized the strategic importance of the power allocation, describing it as a “turning point” for Pakistan’s digital future. He noted that the move is “not just for cryptocurrencies or AI but to shape the digital trajectory of our nation”. Aurangzeb highlighted Pakistan’s unique geoeconomic position as a bridge between Asia, Europe, and the Middle East, positioning the country as an ideal hub for data traffic and digital infrastructure.
The Pakistan Crypto Council (PCC), a government-backed body established in March 2025, will oversee the project. CEO Bilal Bin Saqib underlined that harnessing surplus electricity for bitcoin mining could generate substantial foreign currency inflows, while concurrently creating skilled technology jobs domestically. Saqib also noted growing interest from international mining firms, with several delegations already conducting exploratory visits.
3. Infrastructure Enhancements: Renewable Energy and Submarine Cables
Looking beyond the initial power allocation, Pakistan plans to phase in data centers powered by renewable energy sources, such as solar and wind farms, to ensure environmental sustainability and further reduce operational costs. Integrating renewables aligns with global best practices and enhances the attractiveness of these facilities to eco-conscious investors.
Simultaneously, Pakistan is set to benefit from the “Africa-2” submarine cable project, which will link 33 African, Middle Eastern, and South Asian nations via 46 landing stations. The cable will dramatically expand bandwidth, provide backup routing, and reduce latency—critical factors for blockchain networks and AI workloads that rely on low-latency, high-throughput connectivity.
4. Regulatory Environment and Policy Challenges
Despite the government’s overt support for mining and AI, Pakistan’s broader cryptocurrency regulation remains opaque. The State Bank of Pakistan has historically issued warnings about crypto trading risks, and legal frameworks governing virtual assets are still under development. This regulatory ambiguity could deter some institutional investors.
To address these gaps, the Finance Ministry has signaled forthcoming tax incentives, including income-tax relief and import-duty exemptions for mining equipment and AI hardware. These measures aim to level the playing field and accelerate private-sector participation, though the precise timing and scope of these incentives have yet to be formalized.
5. Recent Developments and Future Outlook
Since the initial announcement, Pakistan has engaged in high-level talks with global blockchain firms and AI consortiums. Binance co-founder Changpeng Zhao was recently appointed strategic adviser to the PCC, tasked with guiding regulatory framework development and infrastructure planning. His involvement is expected to lend credibility and attract further international interest.
Furthermore, early pilots are underway in regions with the greatest excess power availability. Preliminary technical assessments suggest that tailored incentives and streamlined permitting processes could unlock an additional 1,500 MW in subsequent phases, potentially elevating Pakistan to one of the top global bitcoin-mining jurisdictions by capacity.
Conclusion
Pakistan’s decision to dedicate 2,000 MW to bitcoin mining and AI data centers represents a bold attempt to monetize surplus power, foster digital innovation, and enhance economic resilience. Through the PCC’s leadership, renewable energy integration, submarine-cable connectivity, and forthcoming policy incentives, the initiative aims to catalyze high-tech job creation, foreign direct investment, and digital-export revenue. However, success hinges on clarifying regulatory frameworks and executing infrastructure upgrades efficiently. If implemented effectively, Pakistan could emerge as a strategic digital hub at the crossroads of three continents, setting a model for leveraging energy assets in the age of blockchain and AI.
