The Pakistani government has announced a plan to allocate 2,000 megawatts (MW) of electricity to Bitcoin mining and AI data centers. This initiative marks the first phase of a national strategy aimed at monetizing surplus energy, attracting foreign investment, and positioning Pakistan as a key player in the digital revolution, according to the Finance Division.

Spearheaded by the Pakistan Crypto Council (PCC) under the Ministry of Finance, this initiative seeks to transform Pakistan’s underutilized power capacity into a valuable asset. Finance Minister Senator Muhammad Aurangzeb stated that this strategic allocation is a pivotal moment for Pakistan’s digital transformation, unlocking economic potential by converting excess energy into innovation, investment, and international revenue.

Pakistan is geographically and economically well-suited to become a global hub for data centers. Its location as a digital bridge between Asia, Europe, and the Middle East has already attracted significant interest from international Bitcoin miners and AI firms. The press release noted that major players are expected to visit Pakistan in the coming weeks due to the efforts of the Pakistan Crypto Council.

AI and Bitcoin mining operations require substantial and consistent power, making Pakistan’s surplus electricity a valuable resource. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, emphasized that this energy-backed digital transformation unlocks high-value investment and allows the government to generate foreign exchange in USD through Bitcoin mining. He also suggested that Pakistan could accumulate Bitcoin in a national wallet, shifting from selling power in PKR to holding digital assets for long-term economic stability.

Pakistan’s digital ambitions are supported by the recent installation of the 45,000-kilometer Africa-2 submarine internet cable, which enhances bandwidth and redundancy—critical for AI data centers. The country’s large population, including a substantial number of crypto users, further strengthens its potential as a regional tech hub.

This announcement is the first phase of a broader digital infrastructure rollout. Future developments will include renewable energy-powered facilities, leveraging Pakistan’s wind, solar, and hydropower resources. The Gharo-Keti Bandar corridor has a wind power potential of 50,000 MW. The plan also involves strategic international partnerships with leading blockchain and AI companies, and the establishment of fintech and innovation hubs.

Proposed incentives, such as tax holidays, customs duty exemptions on equipment, and reduced taxes for AI infrastructure developers, will further support these efforts.