Pakistan Launches Digital Transformation Plan with 2,000MW Energy Allocation for Bitcoin Mining
Pakistan has allocated 2,000 megawatts of surplus electricity exclusively for Bitcoin mining and artificial intelligence centers, according to Cointelegraph. The decision forms part of a broader digital transformation plan spearheaded by the Pakistan Crypto Council and backed by the Ministry of Finance. Finance Minister Muhammad Aurangzeb stated the move will attract billions in foreign investment while generating high-tech employment across the country.
The initiative operates in two phases. The first channels excess power into AI infrastructure and crypto mining operations. The second phase will introduce renewable energy access for mining operations, balancing growth with environmental responsibility. Multiple foreign delegations have visited Pakistan recently to explore potential partnerships, with officials confirming rising interest from international Bitcoin miners and AI firms.
Government Creates Regulatory Framework for Digital Assets
On May 21, Pakistan's Ministry of Finance endorsed creation of the Pakistan Digital Assets Authority (PDAA) to regulate blockchain-based financial infrastructure. The PDAA will oversee licensing and regulating exchanges, custodians, wallets, tokenized platforms, stablecoins, and decentralized finance applications. The authority will also tokenize national assets and government debt while facilitating monetization of Pakistan's surplus electricity through regulated Bitcoin mining.
To attract investors, the Ministry of Finance announced tax incentives for AI centers and duty exemptions for Bitcoin miners. Bilal Bin Saqib, CEO of Pakistan's Crypto Council, called the development a "turning point" for the country's digital economy. He claimed that with clear regulations and transparent frameworks, Pakistan could emerge as a major player in global crypto and AI sectors.
Pakistan ranked ninth in Chainalysis' 2024 crypto adoption index due to strong retail adoption and centralized service transactions. Statista data shows Pakistan's crypto market experiencing rapid growth, with over 27 million users projected by 2025 from a population of 247 million.
Global Bitcoin Mining Faces Post-Halving Challenges
The 2024 Bitcoin halving reduced mining rewards from 6.25 BTC to 3.125 BTC, forcing operations to optimize efficiency and reduce energy costs. Cointelegraph Research found that hashprice dropped from $0.12 in April 2024 to about $0.049 by April 2025. Network difficulty surged to an all-time high of 123T, making returns harder to generate.
Mining operations now prioritize low-cost energy locations. In Oman, licensed miners secure electricity at $0.05-$0.07 per kWh through government subsidies. The UAE offers semi-governmental projects at $0.035-$0.045 per kWh. Meanwhile, US industrial power costs exceed $0.1 per kWh, forcing miners toward more cost-efficient locations in Africa, the Middle East, and Central Asia.
HashRate Index identifies the United States as the top Bitcoin mining market, offering institutional involvement and risk-adjusted returns. Russia presents opportunities through vast energy resources but poses regulatory risks due to international sanctions. Kazakhstan emerged as a major hub after China's mining ban but faces increasing regulatory scrutiny and energy consumption limitations.
Energy Infrastructure Drives AI Data Center Investment
Global data center power demand will increase 50% by 2027 and potentially 165% by 2030, according to Goldman Sachs. AI workloads currently represent 14% of global data center power usage, with cloud computing accounting for 54% and traditional workloads 32%. The occupancy rate for data center infrastructure will increase from 85% in 2023 to over 95% by late 2026.
McKinsey estimates AI-related data center capacity demand will reach 156 gigawatts by 2030, requiring $5.2 trillion in capital expenditures. The analysis projects 125 incremental gigawatts added between 2025 and 2030. Investment requirements span power generation, transmission, data center infrastructure, and cooling solutions.
Pakistan's energy allocation aligns with global trends where countries leverage surplus electricity for digital infrastructure. The nation has surplus generation capacity due to new power plant construction and weaker demand partly caused by COVID-19. Reuters reported that Pakistan produces more electricity than needed, though power still doesn't reach up to 50 million people who need it.
This development positions Pakistan to capture value from unused energy resources while participating in the global digital economy transformation. The country's strategic approach combines immediate economic benefits with long-term positioning in emerging technology sectors.
Related Reading on BTC Peers
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