Pakistan has taken a bold step toward embracing digital innovation by allocating 2,000 megawatts (MW) of power capacity for Bitcoin mining and AI data centers in the first phase of a nationwide initiative. This strategic move aligns with the country’s broader goals of legalizing cryptocurrency, attracting foreign investment, and monetizing underutilized energy resources.
The initiative is being led by the newly formed Pakistan Cryptocurrency Committee, operating under the Ministry of Finance. According to an official statement, the project aims to repurpose idle power generation assets—particularly coal-fired plants operating at minimal capacity—into high-value digital infrastructure hubs.
Strategic Use of Underutilized Energy Infrastructure
Several major power plants, including those in Sahiwal, China Hub, and Port Qasim, are currently running at only about 15% of their total capacity. These facilities, originally developed under the China-Pakistan Economic Corridor (CPEC), have long faced challenges related to grid integration and demand shortfalls. By redirecting surplus electricity to energy-intensive operations like Bitcoin mining and AI computing, Pakistan hopes to turn financial liabilities into revenue-generating assets.
This approach not only improves return on investment for existing infrastructure but also supports national energy sustainability goals by reducing waste. The government estimates that fully utilizing this 2,000 MW capacity could generate hundreds of millions in annual revenue while creating thousands of skilled tech jobs.
👉 Discover how emerging economies are turning unused power into digital gold.
Legalizing Crypto: A Path to Financial Modernization
Pakistan’s economy, which narrowly avoided sovereign default in 2023, is actively pursuing reforms to attract global capital. One of the most promising avenues is the formal recognition and regulation of cryptocurrencies.
With an estimated 15 to 20 million crypto users already active within its borders—many participating through peer-to-peer platforms despite previous regulatory ambiguity—the government sees immense potential in building a compliant local ecosystem.
The new regulatory framework aims to:
- Establish clear licensing rules for exchanges and custodians
- Enable tax compliance and anti-money laundering (AML) oversight
- Facilitate cross-border investment in blockchain and fintech sectors
By creating a transparent legal environment, Pakistan hopes to become a regional hub for blockchain innovation in South Asia.
Global Partnerships Accelerate Blockchain Adoption
In April 2025, Pakistan extended an invitation to Changpeng Zhao, co-founder of Binance, to advise on the development of a national digital financial platform. While no formal partnership has been confirmed, the engagement signals a strong intent to leverage global expertise in building scalable, secure crypto infrastructure.
Additionally, the Pakistan Cryptocurrency Committee has entered into a preliminary agreement with Donald Trump’s blockchain initiative, focusing on collaborative research, developer training, and pilot programs for decentralized identity and voting systems. Though still in early stages, this collaboration underscores Pakistan’s ambition to position itself at the forefront of global blockchain adoption.
While the Finance Ministry did not disclose specific companies involved in the mining rollout, it confirmed that multiple international cryptocurrency miners and data infrastructure firms have expressed interest in deploying operations within Pakistan.
Economic Impact and Job Creation
Beyond immediate revenue from electricity sales and mining output, the initiative is expected to catalyze long-term economic transformation. Key benefits include:
- High-tech job creation in engineering, cybersecurity, and data management
- Growth of ancillary industries such as hardware supply, cooling systems, and network maintenance
- Strengthened energy grid resilience through distributed load balancing
- Increased foreign direct investment (FDI) inflows into the tech sector
Regions hosting mining facilities may also see improvements in digital connectivity and infrastructure development, potentially spurring startup ecosystems and innovation clusters.
👉 See how blockchain infrastructure is reshaping emerging markets.
Frequently Asked Questions (FAQ)
Q: Why is Pakistan allocating power for Bitcoin mining?
A: Pakistan is leveraging its underused power generation capacity—especially coal plants operating below 20% output—to attract cryptocurrency mining operations. This helps monetize idle assets, generate revenue, create jobs, and support broader economic recovery.
Q: Is cryptocurrency legal in Pakistan now?
A: While full regulatory legislation is still being finalized, the government has shifted from prohibition to active facilitation. Bitcoin mining is now permitted under specific conditions, and efforts are underway to establish a comprehensive legal framework for crypto exchanges and digital assets.
Q: How will this affect Pakistan’s energy grid?
A: The 2,000 MW allocation targets surplus capacity rather than diverting power from households or industries. In fact, integrating flexible loads like mining can improve grid stability by absorbing excess generation during low-demand periods.
Q: What role does artificial intelligence play in this plan?
A: Alongside Bitcoin mining, the same energy and infrastructure will support AI data centers. These facilities require similar high-power, high-cooling environments, making them ideal co-located partners in this digital transformation strategy.
Q: Are there environmental concerns with using coal-powered mining?
A: Yes, sustainability remains a concern. However, officials argue that since these plants are already built and underused, utilizing them for productive computing reduces relative waste. Future phases may incorporate renewable energy integration.
Looking Ahead: Building a Digital Economy
Pakistan’s bold foray into Bitcoin mining represents more than just a short-term economic stimulus—it’s a foundational step toward building a modern digital economy. By aligning energy policy with technological advancement, the country is positioning itself as a forward-thinking player in the global blockchain landscape.
As regulatory clarity improves and international partnerships expand, Pakistan could emerge as a key node in the decentralized web—bridging traditional energy assets with next-generation computing needs.
👉 Explore how countries are using blockchain to drive economic growth.
Core Keywords
- Bitcoin mining Pakistan
- Cryptocurrency regulation
- Blockchain investment
- AI data centers
- Power capacity allocation
- Digital economy Pakistan
- Crypto mining infrastructure
- Foreign direct investment (FDI)
With strategic vision and targeted execution, Pakistan’s 2,000 MW digital transformation plan could serve as a model for other developing nations seeking to harness blockchain technology for inclusive growth.