BeNewz
Related Articles
Aftab Maken
ISLAMABAD
In a significant policy shift aimed at monetising surplus electricity and drawing foreign investment, the federal government has earmarked 2,000 megawatts (MW) of power in the first phase of a national plan to support Bitcoin mining and Artificial Intelligence (AI) data centres.
The initiative, led by the Pakistan Crypto Council (PCC)—a government-backed body under the Ministry of Finance—is part of a broader strategy to turn idle generation capacity into a revenue-generating asset. Authorities say the move could unlock billions of dollars in investment, generate employment in the tech sector, and earn much-needed foreign exchange for the country, says an official statement of the Finance Ministry on Sunday.
Finance Minister Senator Muhammad Aurangzeb described the allocation as “a pivotal step” in Pakistan’s digital evolution. “We are transforming excess energy into innovation, investment and international revenue,” he said.
Repurposing Idle Power
Pakistan has long grappled with underutilised generation capacity, particularly from plants running below capacity due to sluggish demand and transmission constraints. Officials believe high-load, round-the-clock power consumers like data centres and crypto mining operations offer an ideal outlet for this idle energy.
“This is a financial liability being converted into a digital asset,” said Bilal Bin Saqib, CEO of the PCC. “With proper regulation and transparency, Pakistan has the potential to emerge as a global AI and crypto infrastructure hub.”
Global Firms Explore Pakistan
Since the formation of the PCC, several foreign firms have held exploratory discussions with Pakistani authorities, with more expected to visit following the latest announcement. Officials cite Pakistan’s geographic position as a key attraction, offering a natural data bridge between Asia, Europe, and the Middle East.
Pakistan’s competitive electricity pricing and land availability also make it attractive compared to regional players such as India and Singapore, where higher power costs and urban land scarcity pose scalability constraints.
Connectivity Boost
Pakistan’s digital backbone has also received a major upgrade with the recent landing of the Africa-2 submarine cable. The 45,000-kilometre cable, part of a network connecting 33 countries, is expected to significantly enhance bandwidth, reduce latency, and improve network redundancy—critical factors for the smooth functioning of AI and blockchain-based systems.
Long-Term Vision
The 2,000MW allocation marks the first phase of a multi-stage digital infrastructure rollout. Future plans include renewable energy-powered data centres utilising wind, solar and hydropower—particularly in high-potential zones like the Gharo-Keti Bandar corridor, which has an estimated 50,000MW wind capacity.
The government is also considering a set of incentives for developers, including tax holidays, duty-free equipment imports, and reduced taxes on AI infrastructure projects.
Digital Assets and Sovereignty
Saqib said the government could eventually earn and hold digital currencies directly by mining Bitcoin, instead of selling surplus power in local currency. “This is about building sovereign digital reserves—moving from rupee-based revenue to global digital assets.”
With a population exceeding 250 million and one of the highest crypto user bases in the region—estimated at over 40 million—Pakistan is seen as having strong potential to emerge as a digital economy leader. The establishment of local data centres is expected to enhance data sovereignty, cybersecurity, and domestic capabilities in cloud and AI technologies.
Officials expect the initiative to create thousands of direct and indirect jobs in engineering, information technology, and data science—contributing to a skilled digital workforce.
Seizing the Global Gap
With global demand for AI data centre capacity projected at over 100 gigawatts (GW) against a supply of only 15 GW, Pakistan sees an opportunity to stake its claim in a fast-growing sector.
“Pakistan has the land, the power, the people, and now the policy direction,” said an official familiar with the plan. “This could be our moment to lead in the next wave of technological infrastructure.”
