Pakistan Boosts Bitcoin Mining Capacity with 2000 MW for Crypto and AI Expansion
Pakistan Embraces Bitcoin Mining as Part of National Digital Transformation Strategy
In a significant move towards digital transformation, Pakistan has announced a major initiative to allocate 2,000 megawatts (MW) of surplus electricity for Bitcoin mining and AI data centers. This ambitious plan, outlined by Bilal Bin Saqib, the head of Pakistan's Crypto Council and an adviser to the Finance Minister, could potentially reshape the global bitcoin mining landscape.
The initiative aligns with a global trend of state-level cryptocurrency adoption and follows in the footsteps of countries like El Salvador, which has successfully mined over 2,000 BTC (valued at BTC$116,111) since 2021, using geothermal energy.
Saqib noted that several international firms have shown interest in partnerships with Pakistan, and the involvement of Changpeng Zhao, the founder of Binance, adds credibility to the initiative. Zhao is serving as a strategic adviser to the Pakistan Crypto Council, tasked with supporting blockchain infrastructure and regulatory frameworks in the country.
Challenges remain in terms of regulatory clarity and infrastructure development for the long-term success of Pakistan's bitcoin mining initiative. However, the government has introduced tax incentives, including duty exemptions for bitcoin miners and financial perks for AI centers, to attract global investors. These measures are designed to reduce operational costs for bitcoin miners, who often face high energy and equipment expenses.
The plan includes integrated renewable energy sources into mining operations, reflecting Pakistan's focus on addressing environmental concerns in the second phase of the initiative. If executed well, Pakistan could boost its digital economy and potentially inspire other nations to follow suit.
The global annual energy consumption of bitcoin mining is approximately 160 TWh, as per the Cambridge Bitcoin Electricity Consumption Index (CBECI) in May 2025. Pakistan's 2,000 MW electricity allocation for bitcoin mining could be a model for other developing nations with surplus energy.
In conclusion, Pakistan's bitcoin mining initiative is a bold step towards digital transformation and could have far-reaching implications for the global bitcoin mining landscape. By attracting foreign investment and stimulating economic growth, Pakistan aims to position itself as a leader in the digital economy.
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