Government allocates 2,000 MW In first phase for bitcoin mining and AI data centers in landmark digital infrastructure push
The council has also entered into discussions with international Bitcoin mining firms to leverage Pakistan's surplus electricity. PHOTO: PIXABAY
Listen to article
In a groundbreaking move to transform Pakistan into a global leader in digital innovation, the Government of Pakistan has announced the allocation of 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power Bitcoin mining and Artificial Intelligence (AI) data centres.
This ambitious initiative is spearheaded by the Pakistan Crypto Council (PCC)—a government-backed body under the Ministry of Finance—as part of a broader strategy to monetise surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment, and generate billions of dollars for the government.
Finance Minister Senator Muhammad Aurangzeb stated that this strategic allocation marks a pivotal moment in Pakistan's digital transformation journey, unlocking economic potential by turning excess energy into innovation, investment, and international revenue.
Pakistan is uniquely positioned—both geographically and economically—to become a global hub for data centres. As a digital bridge between Asia, Europe, and the Middle East, Pakistan offers the most strategic location in the world for data flow and digital infrastructure. Since the inception of the Pakistan Crypto Council, there has been tremendous interest from global Bitcoin miners and data infrastructure companies. Several international firms have already visited the country for exploratory discussions, and following this landmark announcement, more global players are expected to visit in the coming weeks.
Pakistan's underutilised power generation capacity is now being repurposed into a high-value digital asse, according to a statement by the finance ministry. AI data centers and Bitcoin mining operations, known for their consistent and heavy energy usage, provide an ideal use case for this surplus. Redirecting idle energy, especially from plants operating below capacity, allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity.
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, emphasised the transformative nature of this initiative. He explained that with proper regulation, transparency, and international collaboration, Pakistan can become a global crypto and AI powerhouse. He added that this energy-backed digital transformation not only unlocks high-value investment but enables the government to generate foreign exchange in USD through Bitcoin mining.
Moeover, as regulations evolve, Pakistan can accumulate Bitcoin directly into a national wallet, marking a monumental shift from selling power in Pakistani Rupees (PKR) to leveraging digital assets for economic stability.
By offering stable and affordable energy, Pakistan presents a highly competitive environment compared to regional counterparts like India and Singapore, where rising power costs and land scarcity limit scalability. Pakistan's strategic advantage is further underscored by the global context: while AI data centres' demand has soared to over 100GW, global supply remains around 15GW. This massive shortfall creates an unprecedented opportunity for countries like Pakistan with surplus power, land, and an emerging regulatory framework.
The country's digital connectivity has also been significantly strengthened by the landing of the world's largest submarine internet cable. The Africa-2 Cable Project, a 45,000-kilometre global network connecting 33 countries through 46 landing stations, has now landed in Pakistan. This milestone enhances Pakistan's internet bandwidth, latency, and resilience through redundant fiber routes, key for ensuring high availability and operational continuity for AI data centers.
With a population of over 250 million and more than 40 million crypto users, Pakistan holds immense potential as a regional leader in digital services. Establishing local AI data centers will not only address growing concerns around data sovereignty but will also enhance cybersecurity, improve digital service delivery, and empower national capabilities in AI and cloud infrastructure. These centers are expected to create thousands of direct and indirect jobs, catalysing the development of a skilled workforce in engineering, IT, and data sciences.
This announcement marks only the first phase of a broader, multi-stage digital infrastructure rollout. Future developments are expected to include renewable energy-powered facilities—leveraging Pakistan's immense wind (50,000 MW potential in the Gharo-Keti Bandar corridor), solar, and hydropower resources—strategic international partnerships with leading blockchain and AI companies, and the establishment of fintech and innovation hubs. These efforts will be complemented by proposed incentives such as tax holidays, customs duty exemptions on equipment, and reduced taxes for AI infrastructure developers.
Pakistan's combination of surplus power, geographic advantage, advanced subsea cable connectivity, renewable energy potential, and a large, digitally engaged population creates a compelling case for becoming a regional epicenter of Web3, AI, and digital innovation.
With the right incentives, strategic investments, and collaborative partnerships, Pakistan is positioning itself not only as a destination for global digital infrastructure but also as a sovereign economy that can accumulate digital assets, export digital services, and lead in the next generation of technological transformation.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
7 hours ago
- Business Recorder
Minimum wage to remain unchanged at Rs37,000 in FY26, says Aurangzeb
Finance Minister Muhammad Aurangzeb on Wednesday said the government hadn't increased the minimum wage in the budget for the financial year 2025-26 and it would remain at Rs37,000 per month. The finance minister didn't mention about the minimum wage in his budget speech on Tuesday, as he announced Pakistan's federal budget 2025-26 'for a competitive economy' on Tuesday, targeting a modest 4.2% growth for the coming fiscal year, compared to 2.7% expected in the outgoing FY25. The budget was announced with a total outlay of Rs17.6 trillion, down 7% or Rs1.3 trillion as compared to the Rs18.9 trillion budgeted outlay of FY25. Key highlights of Pakistan budget for 2025-26 Last year, the government increased the minimum per month wage to Rs37,000 from previously Rs32,000. However, the government has kept it unchanged this year. This comes despite a demand from a key ally of Pakistan Muslim League - Nawaz (PML-N) led government, Pakistan People's Party (PPP) to increase the minimum wage to Rs50,000.
Business Recorder
9 hours ago
- Business Recorder
Pakistan's plan to sharply increase growth faces headwinds, analysts say
ISLAMABAD: Pakistan is aiming to sharply increase economic growth under its annual federal budget unveiled on Tuesday, but analysts are sceptical about the country's ability to meet its ambitious goals. The budget targets higher revenues and a steep fiscal deficit cut under International Monetary Fund (IMF) backed reforms. Yet, defence spending was hiked 20%, excluding military pensions, after last month's conflict with India. Finance Minister Muhammad Aurangzeb said in a post-budget press conference on Wednesday that customs duties have been cut or removed on thousands of raw materials and intermediate goods. 'Industry here has to be competitive, competitive enough to export,' he said. But growth drivers remain unclear. The government is targeting 4.2% GDP growth in fiscal 2026, up from 2.7% this year, which was revised down from an initial 3.6% as agriculture and large-scale manufacturing underperformed. 'Pakistan's GDP growth projection of 4.2% appears ambitious given recent performance, and overly optimistic assumptions may place tax targets out of reach,' said Callee Davis, senior economist at Oxford Economics. Key highlights of Pakistan budget for 2025-26 Pakistan's past growth spurts were consumption-led, triggering balance-of-payments crises and IMF bailouts. The government says it now wants higher-quality, investment-driven growth. Aurangzeb said structural reforms are underway, pointing to East Asia-style pro-market transitions. 'This is an East Asia moment for Pakistan,' he said. The 17.57 trillion rupee ($62.24 billion) budget comes as Pakistan remains under a $7 billion IMF programme. Revenues are projected to rise over 14%, driven by new taxes and broadening the tax base. The fiscal deficit is targeted at 3.9% of GDP, down from this year's 5.9%. Income tax calculator for FY 2025-26 Key reforms include taxing agriculture, real estate, and retail, and reviving stalled privatisations. But revenue shortfalls this year have raised doubts, with both agriculture income tax and retail collections missing targets. Only 1.3% of the population paid income tax in 2024, government data shows. 'Pakistan's budget keeps the IMF and investors happy, even if it comes at a near-term cost to growth,' said Hasnain Malik, head of equity strategy at Tellimer. 'The political setup, with the military firmly in charge, also lowers the risk of protests.' While overall spending will fall 7%, defence will rise after the worst fighting between the nuclear-armed neighbours in decades. Including pensions, defence spending will total $12 billion, 19% of the federal budget or 2.5% of GDP, matching India's share, per World Bank data. The hike was enabled by a sharp drop in interest payments, as the central bank cut policy rates from 22% to 11% over the past year, easing domestic debt servicing costs. Aurangzeb said cuts in subsidies also helped create fiscal space.
Business Recorder
9 hours ago
- Business Recorder
Pakistan budget for FY2025-26 in brief
Finance Minister Muhammad Aurangzeb announced Pakistan's federal budget 2025-26 'for a competitive economy' on Tuesday, targeting a modest 4.2% growth for the coming fiscal year, compared to 2.7% expected in the outgoing FY25. 'Because every number is locked, so we have to get money from somewhere to provide relief somewhere,' Aurangzeb said in the post-budget press conference on Wednesday. 'This is a work in progress.' Business Recorder has brought to our readers a 'Budget in Brief' that gives an overview of the federal budget for FY2025-26. The brief provides a glimpse of key priorities and objectives of the federal government, offers a summary of revenue and expenditures, fiscal deficit targets and the corresponding financing plan. Income tax calculator for FY 2025-26 The following document also provides a detailed breakdown of tax and non tax receipts, projected share of provinces under the NFC Award, capital and external receipts, and current expenditures along with its functional classification. Allocations for subsidies, grants and transfers, as well as PSDP are also provided.
