Pakistan, facing significant economic challenges and an oversupply of electricity generation capacity, has announced a major initiative to allocate 2,000 megawatts (MW) of surplus electricity in the first phase of a national program dedicated to powering Bitcoin mining and artificial intelligence (AI) data centres.

This move, unveiled by the Finance Ministry on May 25, 2025, is part of a broader strategy to transform underused power assets into revenue-generating ventures and to position Pakistan as a regional leader in digital innovation.

The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body established in March under the Ministry of Finance to regulate blockchain technology and digital assets. The council is chaired by entrepreneur Bilal Bin Saqib, who serves as chief adviser to the finance minister. The government’s recent decision to legalize cryptocurrency aims to attract international investment and establish a regulatory framework to foster the growth of digital assets and blockchain technologies in the country.

By leveraging its surplus electricity—particularly from coal-based power plants like Sahiwal, China Hub, and Port Qasim, which currently operate at only 15% capacity—Pakistan seeks to monetize idle energy resources. This approach is expected to create thousands of high-tech jobs in fields such as engineering, IT, and data sciences, while also generating significant foreign direct investment and government revenue.

Finance Minister Muhammad Aurangzeb described the allocation as a crucial step in Pakistan’s digital transformation, emphasizing the country’s unique geographic position as a bridge between Asia, Europe, and the Middle East. This strategic location, combined with advanced connectivity such as the recent landing of the Africa-2 submarine cable, provides Pakistan with a competitive advantage for becoming a global hub for data centres and digital infrastructure.

The initiative has already attracted interest from international Bitcoin miners and data infrastructure firms, with several delegations visiting Pakistan for exploratory discussions. The government is offering incentives such as tax holidays, customs duty exemptions, and reduced taxes to attract further investment.

In the longer term, the plan envisions multi-stage expansion, including renewable energy-powered facilities utilizing Pakistan’s wind, solar, and hydropower resources, and the development of fintech and innovation hubs in partnership with global blockchain and AI firms.

Bilal Bin Saqib has highlighted the potential for Pakistan to accumulate Bitcoin reserves directly, thereby generating foreign exchange earnings and enhancing economic stability. The establishment of local AI data centres is also expected to address issues of data sovereignty, strengthen cybersecurity, and improve digital service delivery for Pakistan’s large and digitally engaged population.

This represents a pivotal moment in Pakistan’s efforts to convert longstanding liabilities in the energy sector into sustainable, high-value digital assets, driving innovation, job creation, and international investment.

Based On FirstPost Report