Pakistan’s Ministry of Finance has approved a plan to allocate 2,000 megawatts (MW) of surplus electricity to Bitcoin mining and artificial intelligence (AI) centers. The move aims to strengthen the country’s digital infrastructure and attract international investment.

Pakistan’s Crypto Council, along with state officials, revealed the plan in a May 25 report aired by 24NewsHD TV Channel. The shift aims to use resources at the national level to build up blockchain and AI.

Government Allocates Electricity for Bitcoin Mining and AI Infrastructure

Pakistan’s Finance Ministry has reserved 2,000MW of excess electricity to power Bitcoin mining and AI facilities. This is part of a broader strategy to monetize the country’s unused energy and build a strong digital economy.

Finance Minister Muhammad Aurangzeb said the initiative is expected to bring billions in foreign direct investment. According to the report, “The plan will create high-tech jobs and support long-term economic growth. “

The Pakistan Crypto Council proposed using runoff electricity for Bitcoin mining at a meeting on March 21. This meeting included key officials such as the governor of the State Bank of Pakistan, the chairman of the Securities and Exchange Commission (SECP), and the federal IT secretary.

Bitcoin Miners and AI Firms Eye Pakistan Amid Tax Incentives

International interest in Pakistan’s new crypto and AI plan has increased. Several foreign delegations have visited the country in recent months to evaluate investment opportunities in Bitcoin mining and AI projects.

To attract more investors, the Ministry of Finance announced tax incentives for AI hubs and customs duty exemptions for Bitcoin miners. These benefits are designed to make Pakistan more competitive in the global digital space.

Bilal Bin Saqib, CEO of the Pakistan Crypto Council, called the policy a “turning point” in an official statement.He mentioned that strict rules and solid infrastructure can make Pakistan a top country when it comes to using crypto and AI.

Renewable Energy and Regulatory Framework to Support Growth

The plan will enter its second phase with the introduction of renewable energy for mining operations. Officials aim to lower environmental risks while scaling digital infrastructure.

Pakistan also created the Pakistan Digital Assets Authority (PDAA) on May 21. The body will oversee crypto exchanges, stablecoins, tokenized platforms, and decentralized finance (DeFi) systems. The government will also guide the licensing and laws for blockchain-driven financial businesses.

The PDAA will help make it possible to tokenize national assets and government debt. Excess electricity will be eco-friendly transformed into blockchain-approved Bitcoin through RWE’s legal mining operations.

Pakistan’s Crypto Adoption and Market Outlook

According to Chainalysis’ latest report, Pakistan ranks in the top 10 countries for crypto adoption, mainly because of strong retail use of cryptocurrencies. It is projected by Statista that Pakistan will see cryptocurrency use rise to more than 27 million by 2025 in a country that has 247 million people.

The country’s crypto market is growing because young people are interested, use mobile devices, and want to use decentralized finance tools. If properly backed and legally established, the new 2,000MW deal could help the country become an important center for both blockchain and AI.

The plan supports the government’s plans to strengthen the economy and encourage new technology.