Pakistan Redirects 2000 megawatts of Surplus Electricity to Fuel Bitcoin Mining and Artificial Intelligence

Pakistan is redirecting 2,000 megawatts of surplus electricity to fuel Bitcoin mining and artificial intelligence (AI) infrastructure, marking a bold

Pakistan is redirecting 2,000 megawatts of surplus electricity to fuel Bitcoin mining and artificial intelligence (AI) infrastructure, marking a bold move by the nation to enter the digital economy, reports 24NewsHD TV Channel.

The initiative, spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance, aims to attract foreign investment, create jobs, and position the country as a regional tech hub. Officials promise a balanced approach, phasing in the program and introducing necessary regulatory reforms.

Addressing a dual challenge of leveraging excess energy and tapping into high-demand tech sectors, Pakistan's power grids will channel unused electricity exclusively toward Bitcoin mining and AI data centers.

“We can generate billions in foreign investment and create thousands of skilled jobs in the next few years,” said Finance Minister Muhammad Aurangzeb.

Currently, coal-based power plants like Sahiwal and Port Qasim operate at just 15% capacity. By diverting this surplus, officials aim to convert wasted resources into economic opportunities.

“This is a pivotal moment in Pakistan's digital transformation,” added Aurangzeb.

Phase one of the program, which has already begun, will see the immediate allocation of 1,000 MW of electricity to AI development and 1,000 MW to crypto mining operations.

International Bitcoin miners and AI firms have already shown interest, with multiple delegations visiting the country in recent months to discuss investment opportunities.

To sweeten the deal further, investors will receive tax incentives and duty exemptions.

“This initiative is a turning point for Pakistan's economic and technological future,” said Bilal Bin Saqib, CEO of the Pakistan Crypto Council.

“We are committed to creating a crypto hub with clear regulations and complete transparency, which will put Pakistan on the global map of cryptocurrency.”

The government plans to monetise the vast amount of surplus energy in the best possible way and use it for crypto mining, which will be regulated by the Pakistan Digital Assets Authority (PDAA).

If the government sells the electricity at a loss, it will accrue more debt, which is not economically viable in the long run.

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As part of the second phase, renewable energy sources will be utilized for mining operations to address environmental concerns linked to coal-based power.

Officials are keen to ensure sustainable growth without compromising Pakistan's climate goals.

This shift aligns with broader trends in the tech industry, where major firms like Apple, Google, and Microsoft are increasingly prioritizing green energy.

Furthermore, the Africa-2 Cable Project, a 45,000-kilometre submarine internet line, will be deployed to significantly boost Pakistan's digital infrastructure.

Enhanced connectivity will streamline communication for AI and blockchain projects, rendering the country more competitive against existing hubs like Singapore.

To attract global players, the Ministry of Finance has announced tax incentives for AI centres and duty exemptions for crypto miners.

Reports suggest that Binance CEO Changpeng Zhao (CZ) is advising the Pakistan Crypto Council, lending his expertise to the initiative.

The newly formed PDAA will be responsible for regulating blockchain projects, tokenising national assets, and overseeing crypto exchanges operating in the country.

Saqib, who had proposed using the surplus energy for mining back in March, argued that these steps will create a “transparent framework” for investors.

Crypto adoption in Pakistan has reached record highs, ranking the country ninth globally in Chainalysis' 2024 crypto adoption index, driven by strong activity from retail users and centralised platforms.

Statista estimates that crypto users will exceed 27 million by 2025, which is over 10% of the total population.

This growth, paired with progressive policies, positions Pakistan as a rising crypto powerhouse.

The PDAA's mandate includes advising the government on how to monetise the surplus power by mining Bitcoin and aiding blockchain startups in setting up their operations.

Officials also plan to accumulate Bitcoin in a national wallet, showcasing the government's confidence in digital assets.

Foreign investors are flocking to Pakistan to explore partnership opportunities, drawn by the low energy costs and strategic location.

The country's role as a digital bridge between Asia, Europe, and the Middle East further enhances its appeal.

Delegations from leading mining firms like Bitfury and Bitmain, as well as AI giants like DeepMind and OpenAI, have already toured facilities and met with officials.

The government's plans for a national digital asset strategy, which includes tokenising government debt to raise funds, are also in the works.

With improved infrastructure and investor-friendly policies, Pakistan aims to rival regional tech giants and become a global hub for digital innovation.

As the world watches, this gamble could rewrite the narrative of Pakistan's economy and launch the country into the 21st century.