Pakistan is allocating 2,000 megawatts of electricity to support bitcoin mining and artificial intelligence data centers, marking a major shift in economic and energy policy aimed at attracting foreign investment and modernizing the country’s digital infrastructure.
The initiative, led by the Pakistan Crypto Council under the Ministry of Finance, is part of a broader government strategy to monetize surplus electricity, develop high-tech employment sectors, and generate revenue through foreign direct investment.
Bilal Bin Saqib, chief adviser to the finance minister for the Pakistan Crypto Council, said the country plans to legalize cryptocurrency and attract international firms. “We have a Web3 native workforce ready to build,” he said.
Finance Minister Muhammad Aurangzeb described the plan as a step toward digital transformation. Officials say Pakistan’s geographic position connecting Asia, Europe and the Middle East makes it an ideal location for data centers and digital traffic routes.
Pakistan’s internet infrastructure was recently enhanced by the arrival of the Africa-2 Cable Project, a 45,000-kilometer submarine network linking 33 countries through 46 landing stations. The cable is expected to improve bandwidth capacity and provide network redundancy, key requirements for AI-driven operations and digital services.
While job creation estimates have not been released, the government sees the digital infrastructure push as a response to Pakistan’s deep economic challenges. Decades of rapid population growth and poor economic policy have reduced savings, stifled investment, and undermined long-term growth. Once the wealthiest economy in South Asia, Pakistan now ranks among the region’s poorest.
A growing public debt burden, driven by persistent fiscal imbalances, has placed further pressure on the economy. Recent International Monetary Fund programs and falling global energy prices have helped stabilize conditions in the short term, but the current policy framework may not allow for enough social or development spending to improve living standards.
Economists argue that long-term recovery depends on deeper tax reforms and greater investment in health, education and family planning. Expanding access to services, particularly for women and girls, could help raise household savings and unlock long-term economic growth. Increased international support, especially on concessional terms, is considered critical to lifting Pakistan out of its current economic trajectory.
The government’s decision to channel electricity toward bitcoin mining and AI infrastructure reflects an effort to turn excess capacity into economic value. With a large, young and tech-savvy population, officials hope Pakistan can position itself as a low-cost destination for digital investment and services.
However, energy sector challenges remain. Widespread adoption of solar panels has reduced reliance on the national grid, threatening utility revenues. If grid-connected users continue to decline, electricity costs could rise for remaining customers, placing further strain on the system. Stabilizing grid finances while accommodating increased decentralized energy use is expected to become a policy priority.
By linking surplus energy to emerging technology sectors, Pakistan is attempting to convert economic pressure into digital opportunity. If successful, the initiative could lay the foundation for new industries and offer a path toward broader economic recovery.