Pakistan Allotted 2,000MW for Crypto Mining and AI Infrastructure
Pakistan has formally set aside 2,000 megawatts (MW) of surplus power for Bitcoin mining and artificial intelligence (AI) infrastructure, a daring step to promote digital growth and foreign investment.
Backed by the Ministry of Finance and championed by the Pakistan Crypto Council, the project will be formulated on a two-stage basis, with the initial stage being the use of existing excess energy for powering AI and crypto mining operations.
Billions of Dollars in Investment and High-Tech Jobs Expected
Finance Minister Muhammad Aurangzeb indicated that the project has the potential to draw billions of dollars’ worth of foreign investment and generate high-tech jobs nationwide.
Officials said that international interest is already in the making, with various foreign delegations already visiting Pakistan to consider partnership opportunities.
Tax Incentives to Attract Crypto and AI Companies
In order to further attract investors, the Ministry of Finance has proposed a package of tax incentives for AI companies and relief from duty for Bitcoin miners.
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, celebrated the move as a “turning point” for the country’s digital development. He had first proposed the utilization of excess energy to mine during the Council’s first meeting in March, which was attended by leading policymakers and regulators.
New Regulator for Tracking Digital Asset Expansion
In another key development, the Ministry of Finance on May 21 cleared the creation of the Pakistan Digital Assets Authority (PDAA).
The PDAA will regulate blockchain-enabled platforms, including exchanges, wallets, stablecoins, and DeFi applications, as well as capitalize on surplus power through licensed Bitcoin mining and support startups in scaling blockchain-enabled solutions.
Pakistan Crypto Market Set to Grow
Chainalysis’ report for 2024 ranks Pakistan at number nine among countries in adoption of crypto due to strong retail usage, mainly.
Statista estimates that more than 27 million Pakistanis will employ cryptocurrencies by the year 2025—about 11% of the country’s population—placing the industry on a sharp growth and mainstreaming trajectory.
