Struggling for cash, Pakistan bets big on Bitcoin and AI
What's the story
Pakistan is dedicating 2,000 megawatts (MW) of electricity to facilitate Bitcoin mining and artificial intelligence (AI) data centers.
The move is part of a larger plan to convert the country's excess power generation capacity into money-making enterprises.
The idea is to generate high-tech jobs, draw foreign direct investment (FDI), and increase government revenues.
Crypto council
Initiative follows legalization of cryptocurrency
The 2,000MW allocation is part of Pakistan's national effort to encourage energy-intensive operations like AI data centers and Bitcoin mining.
The decision follows the recent legalization of cryptocurrency in the country, which is aimed at luring international investments.
In March, Islamabad formed the Pakistan Crypto Council (PCC) under the country's Ministry of Finance to regulate blockchain technology and digital assets.
Foreign investment
Global interest in Pakistan's power allocation
Since the PCC's formation, several global Bitcoin miners and data infrastructure firms have expressed interest in Pakistan's power allocation for Bitcoin mining and AI data centers.
Many have even visited Pakistan for exploratory discussions.
The Ministry of Finance anticipates increased international interest following this latest announcement, further boosting foreign direct investment (FDI) into the country.
Strategic advantage
Pakistan's unique position for data centers
Finance Minister Muhammad Aurangzeb termed this allocation as a key step in Pakistan's digital transformation. He said it seeks to utilize excess energy to fuel innovation and international investment.
The ministry underscored Pakistan's unique geographic and economic position, noting its potential to connect Asia, Europe, and the Middle East as a global hub for data centers.
Economic benefits
Pakistan's competitive edge in AI data centers
Bilal Bin Saqib, chief adviser to the finance minister on the PCC, stressed that proper regulation and transparency could make Pakistan a major global player in cryptocurrency and AI technologies.
He said that this initiative could help generate foreign exchange earnings by attracting Bitcoin mining operations.
It could even allow the government to directly build up Bitcoin reserves.
Job creation
Initiative to create thousands of jobs
The initiative is expected to generate thousands of direct and indirect jobs in engineering, IT, and data sciences. This first phase comes as part of a broader multi-stage rollout plan.
Future plans include renewable energy-powered facilities leveraging Pakistan's wind, solar, and hydropower resources; strategic partnerships with international blockchain and AI firms; and the establishment of fintech and innovation hubs.