On May 25, 2025, Pakistan announced that it would allocate 2,000 megawatts of electricity in the first phase of a national – wide initiative to support Bitcoin mining and AI data centers. Here are the details:
Background and Goals: Pakistan has an estimated 15 – 20 million cryptocurrency users, laying a solid foundation for the development of the crypto – economy. The country aims to legalize cryptocurrency and attract foreign investment. This initiative, led by the Pakistan Crypto Council, is also expected to monetize surplus energy and create high – tech jobs. Pakistan has significant underutilized power generation capacity, with some coal – fired power projects like Sahiwal, China Hub, and Port Qasim currently operating at only 15% capacity. The continuous high demand for electricity from Bitcoin mining and AI data centers provides an ideal outlet for this surplus electricity.
Specific Plans: In the first phase, the government plans to direct excess power to AI infrastructure and crypto – mining operations. The second phase will introduce access to renewable energy for mining operations to balance growth with environmental responsibility.
Supporting Policies: To further encourage investment, the Ministry of Finance has announced a package of tax incentives for AI centers and duty exemptions for Bitcoin miners. On May 21, the Ministry of Finance also endorsed the creation of the Pakistan Digital Assets Authority (PDAA) to oversee the licensing and regulation of exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications. The PDAA will also be responsible for tokenizing national assets and government debt and facilitating the monetization of Pakistan’s surplus electricity through regulated Bitcoin mining.
Industry Response: The move has attracted the attention of international Bitcoin miners and AI firms. Multiple foreign delegations have visited Pakistan in recent months to explore potential partnerships, indicating that Pakistan may play an important role in the global crypto and AI sectors.
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