Key Takeaways
- Pakistan has allocated 2,000 megawatts of surplus electricity for Bitcoin mining and AI infrastructure, citing its commitment to harnessing digital innovation.
- The initiative is part of a strategy to attract foreign investment, create high-tech jobs, and position the country as a competitive player in the digital economy.
- The government believes the initiative could generate billions in foreign investment, boosting the country’s economic landscape.
The Pakistani government has announced allocating 2,000 megawatts (MW) of electricity to drive Bitcoin mining and AI data centers; this marks the first phase of a strategy to monetize surplus energy and attract foreign investment.
Monetize Surplus Energy
According to a statement from the country’s finance division, the program will use coal energy projects like Sahiwal, China Hub, and Port Qasim, which are currently operating at 15% capacity. The statement added that the move would also help monetize surplus energy besides developing the local economy, which barely avoided default in 2023. Speaking about the initiative, Finance Minister Senator Muhammad Aurangzeb declared:
“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.”
Become a Bitcoin Mining Hub
The initiative, led by the Pakistan Cryptocurrency Council, aims to legalize cryptocurrency, create jobs in the technology sector, and attract global investment, as stated in the publication. According to the statement, the country is uniquely economically and geographically positioned to become a hub for Bitcoin mining and data centers.
Pakistan’s geographic advantage as a digital bridge between Asia, Europe, and the Middle East has drawn significant interest from international Bitcoin miners and AI firms. The statement added that major players will visit Pakistan in the coming weeks. The press release added:
“Since the inception of the Pakistan Crypto Council, there has been tremendous interest from global Bitcoin miners and data infrastructure companies.”
Interest from International Bitcoin Miners
According to the communique, the first phase will channel excess electricity into crypto-mining operations and AI data centers. This is expected to attract billions in foreign investment while generating high-tech employment across the country. The second phase is scheduled to introduce access to renewable energy for mining operations, aiming to balance growth with environmental responsibility.
The report stated that interest from international Bitcoin miners and AI firms has already picked up. Officials confirmed that multiple foreign delegations have visited Pakistan in recent months to explore potential partnerships. To incentivize more investment, the Finance Ministry has announced an attractive tax package for AI centers and duty exemptions for Bitcoin miners.
Conclusion
With an estimated population of between 15 and 20 million cryptocurrency users, Pakistan is actively working towards creating a regulatory framework to develop a robust cryptocurrency ecosystem. After enlisting Binance founder Changpeng Zhao to help create a digital financial platform and signing a pact with a crypto project associated with Donald Trump in April, Pakistan is already attracting the attention of crypto market players, which could position the country for better times for the crypto industry.
Frequently Asked Questions
Is Bitcoin mining profitable?
Crypto mining can be profitable. However, miners need to consider factors such as electricity costs, mining difficulty, and market conditions, all of which can impact profitability. Electricity expenses play a crucial role as mining operations consume substantial power.
Which country mines the most Bitcoins?
The US dominates the global Bitcoin mining landscape, leveraging cheap energy, innovative practices, and a favorable regulatory environment. Data indicates that it contributes 37% of the total hash rate.
How long will it take to mine 1 Bitcoin?
In some cases, mining just a single bitcoin can take anywhere from 10 minutes to 30 days, depending on your hardware and software setup.
