The government of Pakistan has embarked on an innovative initiative to capitalize on its surplus electricity. In an unexpected move, it has dedicated 2,000 megawatts of excess power for Bitcoin mining and artificial intelligence development.
This initiative aims not only to address the nation’s energy oversupply but also to provide a significant economic uplift. This step is part of a broader strategy, endorsed by the Finance Ministry and urged by the Pakistan Crypto Council.
Harnessing Surplus Energy
Reports indicate that Pakistan regularly generates more electricity than its infrastructure demands. This excess energy will now be utilized in data centers and cryptocurrency mining operations.
The initial phase is set to launch immediately, facilitating AI hubs and crypto mining sites. Officials anticipate this could attract billions of dollars from foreign investors, as well as create numerous tech-related employment opportunities across various regions.
The Finance Ministry of Pakistan has declared its intention to allocate 2,000 megawatts of surplus energy to bolster Bitcoin mining and AI center initiatives as part of its national digital advancement plan. The government is also implementing favorable tax policies to draw international enterprises, highlighting…
— Wu Blockchain (@WuBlockchain) May 25, 2025
Incentives for Growth
Finance Minister Muhammad Aurangzeb emphasized that transparent regulations and appealing incentives will position Pakistan as a prime destination for tech investments.
Establishing Regulatory Framework
To oversee the burgeoning crypto sector, the government plans to establish a Pakistan Digital Assets Authority. This institution will regulate digital exchanges, e-wallets, and token platforms while ensuring compliance in decentralized finance (DeFi) applications and blockchain technology.
The authority aims to explore the “tokenization” of national assets and public debts, creating a framework that could encompass the auditing of surplus energy usage in mining.
Commitment to Sustainability
The next phase of the initiative takes an eco-conscious approach by promoting renewable energy sources, such as solar and wind power, for mining operations. This strategy aims to mitigate carbon emissions and address public concerns regarding environmental health.
With air quality issues already prevalent in major urban areas, transitioning mining activities to cleaner energy sources is a vital step toward balancing energy demands and protecting public health.
In the global landscape, Pakistan achieved the ninth position on the Chainalysis 2024 Crypto Adoption Index. Projections indicate that by 2025, the country could boast over 27 million cryptocurrency users—over 10% of its population of 247 million—highlighting a dynamic market for both retail and institutional investments.
Despite optimism, some experts warn that the increased energy demands from mining could strain local grids unless managed effectively. They also raise concerns over the volatility of Bitcoin prices, which could transform a potentially profitable venture into a risky gamble.
Featured image from Unsplash, chart from TradingView
