Pakistan has designated 2,000 megawatts of surplus energy exclusively for Bitcoin mining and artificial intelligence facilities.
This initiative is part of a more extensive digital transformation strategy led by the Pakistan Crypto Council and supported by the Ministry of Finance, as reported by local news outlet 24NewsHD TV Channel on May 25 report.
During the initial phase, the government intends to direct surplus energy towards AI infrastructure and cryptocurrency mining ventures. Finance Minister Muhammad Aurangzeb stated that this decision is anticipated to attract billions in foreign investments while generating high-tech jobs nationwide.
The initiative’s second phase will facilitate access to renewable energy for mining operations, with the goal of aligning growth with environmental sustainability.
Related: World Liberty Financial, backed by Trump, collaborates with Pakistan Crypto Council
Pakistan introduces tax advantages to attract investors
According to the report, interest from international Bitcoin (BTC) miners and AI enterprises has already surged. Officials have confirmed that various foreign delegations have visited Pakistan in recent months to explore potential collaborations.
To further stimulate investment, the Ministry of Finance unveiled a suite of tax advantages for AI centers and duty waivers for Bitcoin miners.
Bilal Bin Saqib, CEO of Pakistan’s Crypto Council, reportedly expressed his support for the development, describing it as a “turning point” for the nation’s digital economy.
Saqib asserted that with transparent regulations and a clear framework, Pakistan could become a notable participant in the global crypto and AI landscapes.
Saqib initially suggested leveraging the country’s surplus energy to support Bitcoin mining during the inaugural meeting of the Crypto Council on March 21.
This meeting included lawmakers, the governor of the Bank of Pakistan, the chairman of Pakistan’s Securities and Exchange Commission (SECP), and the federal information technology secretary.
Related: Pakistan suggests a compliance-based crypto regulatory framework — Report
Pakistan establishes Digital Asset Authority
On May 21, Pakistan’s Ministry of Finance approved the formation of a dedicated organization to oversee blockchain-based financial systems in the country.
The Pakistan Digital Assets Authority (PDAA) will function as a regulatory agency to manage licensure and regulate exchanges, custodians, wallets, token platforms, stablecoins, and decentralized finance applications.
The PDAA will also be responsible for tokenizing national assets and government debts, facilitating the monetization of Pakistan’s excess electricity through regulated Bitcoin mining, and assisting startups in developing blockchain-based solutions at scale.
Pakistan ranked favorably in Chainalysis’ 2024 crypto adoption index, positioning ninth, largely due to robust retail adoption and transactions in centralized platforms.
Data from Statista also indicates that Pakistan’s crypto sector is “undergoing rapid expansion,” with projections estimating the number of crypto users to exceed 27 million by 2025, within a population of 247 million.
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