Article Summary
Pakistan has allocated 2,000 megawatts of surplus electricity to Bitcoin mining and artificial intelligence (AI) centers, aiming to transform its energy glut into economic growth. This initiative, supported by the Finance Ministry and the Pakistan Crypto Council, seeks to attract foreign investment and create tech jobs. The government is also introducing tax breaks, duty exemptions, and establishing a Pakistan Digital Assets Authority to regulate the sector. Additionally, plans to use renewable energy for mining operations aim to address environmental concerns.
What This Means for You
- Investment Opportunities: Foreign investors and tech firms can benefit from tax incentives and duty exemptions, making Pakistan an attractive destination for crypto and AI ventures.
- Job Creation: The initiative is expected to generate thousands of tech-related jobs, offering new career opportunities in cities and towns across Pakistan.
- Environmental Impact: The shift toward renewable energy for mining operations could set a precedent for sustainable practices in the crypto industry.
- Future Outlook: While the plan holds promise, critics warn of potential grid strain and Bitcoin price volatility, which could impact long-term profitability.
Pakistan Turns Up The Heat On Bitcoin Mining With 2,000MW Power Allocation

Pakistan’s government has moved to put its excess electricity to work in a surprising way. It has set aside 2,000 megawatts of surplus power for Bitcoin mining and artificial-intelligence centers.
This decision aims to turn an energy glut into an economic boost. It comes as part of a wider plan backed by the Finance Ministry and pushed by the Pakistan Crypto Council.
Surplus Power Allocation
According to local reports, Pakistan’s grid often produces more power than it needs. Now, that extra juice will be sent to data halls and mining rigs.
The first phase kicks off immediately. It will feed AI centers and crypto farms. Officials say this move could draw in billions in foreign cash. It should also open up tech jobs in cities and towns across the country.
Pakistan’s Finance Ministry announced it will allocate 2,000 megawatts of surplus power to support Bitcoin mining and AI center development as part of its national digital transformation strategy. The government has introduced tax incentives to attract foreign firms, with several…
— Wu Blockchain (@WuBlockchain) May 25, 2025
Tax Breaks And Investment
Based on reports, the Finance Ministry has rolled out special tax breaks for AI sites. Bitcoin miners will also get duty exemptions on their gear. Already, foreign delegations have been touring Pakistan to see the setup.
They’re checking out potential deals for hardware, software, and data-center space. Finance Minister Muhammad Aurangzeb told reporters that clear rules and perks will make Pakistan a top spot for tech investors.
Creating An Oversight Authority
The government is also setting up a Pakistan Digital Assets Authority. This new body will license and regulate exchanges, wallets, and token platforms. It will keep an eye on stablecoins, DeFi apps, and other blockchain services.
The digital assets body is even planning to “tokenize” national assets and public debt. In future, it could manage how surplus electricity is used for mining in a way that’s logged and audited.
Environmental Balance
Phase two of the plan brings a green twist. Officials promise to tap renewable sources, like solar and wind, for mining sites. That should help limit carbon emissions and ease public concerns.
Pakistan already faces air-quality issues in major cities. By steering mining operations toward renewables, the government hopes to cut fuel use at thermal plants and balance power needs.
In global rankings, Pakistan came in ninth on Chainalysis’s 2024 crypto adoption index. Based on Statista data, the country is on track to have over 27 million crypto users by 2025. That’s more than 10% of its 247 million people. These figures underline a fast-growing market of retail traders and institutional players alike.
Critics caution that high mining loads would overburden local grids unless properly managed. They also refer to price fluctuations of Bitcoin, which might transform a profitable scheme into a monetary bet.
Featured image from Unsplash, chart from TradingView

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People Also Ask About
- What is Bitcoin mining? Bitcoin mining is the process of validating transactions and adding them to the blockchain using computational power.
- Why is Pakistan allocating power to Bitcoin mining? Pakistan aims to utilize its surplus electricity to boost economic growth and attract foreign investment.
- What are the environmental concerns with Bitcoin mining? Mining consumes significant energy, but Pakistan plans to use renewables to mitigate environmental impact.
- How will this initiative benefit Pakistan’s economy? It is expected to create jobs, attract foreign capital, and position Pakistan as a tech hub.
Expert Opinion
Pakistan’s move to allocate surplus power to Bitcoin mining and AI centers is a bold step toward digital transformation. By leveraging renewable energy and offering tax incentives, the country could become a regional leader in blockchain technology. However, careful management of grid capacity and Bitcoin’s price volatility will be critical to sustaining long-term success.
Key Terms
- Bitcoin mining in Pakistan
- Surplus electricity allocation
- Pakistan Digital Assets Authority
- Renewable energy for crypto mining
- Tax incentives for Bitcoin mining
- Foreign investment in Pakistan
- Sustainable crypto mining practices
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