Pakistan is set to allocate 2,000 MW of surplus electricity to bolster Bitcoin mining and AI data center development, marking a significant stride in its digital transformation journey. This initiative, announced by the Finance Ministry, aims to monetize surplus electricity, attract foreign investment, create high-tech jobs, and generate revenue for the government.

The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body established under the Ministry of Finance. The PCC is tasked with regulating blockchain technology and digital assets. This move is part of a broader strategy to capitalize on Pakistan's excess electricity, particularly from underutilized power plants, and transform it into a valuable digital asset.

Foreign companies are being enticed with attractive tax incentives, including licensing facilities, tax breaks, and exemptions from import duties for mining equipment and data centers. The government is also improving infrastructure to support these initiatives.

The establishment of the Pakistan Digital Assets Authority (PDAA) on May 21, 2025, further strengthens Pakistan's commitment to the crypto sector. The PDAA is responsible for overseeing crypto exchange licensing, stablecoins, government debt tokenization, digital wallets, and DeFi applications. It will also play a role in monetizing surplus electricity through Bitcoin mining projects.

Pakistan's strategic geographic location, advanced connectivity through the Africa-2 submarine cable, and a large number of crypto users position it as a potential global hub for data centers and digital infrastructure. The country's digital connectivity has been significantly strengthened by the landing of the Africa-2 Cable Project, a 45,000-kilometer global network connecting 33 countries.

The government plans to transition to renewable energy sources like solar and hydro power to ensure the project's long-term sustainability. This move is expected to create thousands of high-tech jobs in engineering, IT, and data sciences.

Bilal Bin Saqib, CEO of the PCC, emphasized that with the right legal framework, international cooperation, and transparent operations, Pakistan can become a global leader in both cryptocurrency and AI innovation. By offering stable and affordable energy, Pakistan presents a highly competitive environment compared to regional counterparts.

The development of domestic AI data centers will address concerns around data sovereignty, cybersecurity, and the efficiency of digital service delivery. This initiative is a pivotal moment in Pakistan's efforts to convert liabilities in the energy sector into sustainable, high-value digital assets, driving innovation, job creation, and international investment.