Pakistan is dedicating 2,000 megawatts of its available electricity to power Bitcoin mining operations and facilities focusing on artificial intelligence development.
This initiative is a key component of a larger digital transformation strategy being led by the Pakistan Crypto Council, with support from the Ministry of Finance. Information was initially shared in a news report published by 24NewsHD TV Channel on May 25.
The initial phase involves directing surplus energy resources towards bolstering AI infrastructure and crypto mining ventures. Finance Minister Muhammad Aurangzeb has stated that this decision is projected to attract significant foreign investment while also creating numerous high-tech jobs throughout the nation.
A subsequent phase of the project will prioritize access to renewable energy sources for mining activities, aiming to promote both economic progress and environmental sustainability.
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Pakistan Introduces Tax Advantages to Draw Investors
According to the report, there has already been increased interest from global Bitcoin (BTC) mining companies and AI development firms. Government representatives have confirmed that numerous international delegations have visited Pakistan recently to explore potential partnerships.
To further encourage investment, the Ministry of Finance has announced a set of tax incentives designed for AI centers, as well as duty exemptions specifically for Bitcoin miners.
Bilal Bin Saqib, the CEO of Pakistan’s Crypto Council, has expressed his enthusiastic support for this development, describing it as a pivotal moment for the country’s digital economy.
Saqib believes that with clearly defined regulations and a transparent operating framework, Pakistan has the potential to become a major player in the global crypto and AI industries.
Saqib initially suggested utilizing Pakistan’s excess energy to power Bitcoin mining at the inaugural meeting of the Crypto Council on March 21.
Attendees at the meeting included government lawmakers, the governor of the Bank of Pakistan, the chairman of Pakistan’s Securities and Exchange Commission (SECP), and the federal information technology secretary.
Related: Pakistan proposes compliance-based crypto regulatory framework — Report
Pakistan Establishes Digital Asset Authority
On May 21, Pakistan’s Ministry of Finance officially approved the establishment of a dedicated organization responsible for regulating blockchain-based financial systems throughout the country.
The Pakistan Digital Assets Authority (PDAA) will function as a regulatory agency responsible for overseeing the licensing and regulation of exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications.
The PDAA will also be charged with tokenizing national assets and government debt, facilitating the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining, and assisting startups in developing blockchain-based solutions on a large scale.
Pakistan achieved a high ranking in Chainalysis’ 2024 crypto adoption index, securing ninth place, primarily due to substantial retail adoption and transactions processed through centralized services.
Data provided by Statista also indicates that Pakistan’s cryptocurrency market is “experiencing significant growth,” with projections estimating that the number of crypto users will exceed 27 million by the year 2025, representing a significant portion of the country’s total population of 247 million.
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