Pakistan’s digital economy could see major gains, as local AI data centers support its 15–20 million crypto users by boosting data sovereignty, cybersecurity, and service delivery. (Image: Shutterstock)Pakistan's energy sector has been grappling with challenges, including high electricity tariffs and surplus generation capacity. The rapid expansion of solar energy has further complicated the landscape, as more consumers turn to alternative energy sources to mitigate high costs. The government's new initiative aims to convert underutilized power generation assets into revenue-producing ventures by supporting energy-intensive operations such as AI data centers and Bitcoin mining.
The initiative is spearheaded by the Pakistan Crypto Council (PCC), established under the Ministry of Finance. Bilal Bin Saqib, an entrepreneur and chief adviser to the finance minister on the council, emphasized that proper regulation and transparency could position Pakistan as a significant global player in cryptocurrency and AI technologies. He noted that the initiative could help generate foreign exchange earnings by attracting Bitcoin mining operations and potentially allowing the government to directly accumulate Bitcoin reserves.
Pakistan's geographic location offers a strategic advantage, serving as a digital bridge between Asia, Europe, and the Middle East. The country's recent digital connectivity received a boost with the landing of the Africa-2 Cable Project, a 45,000-kilometer submarine internet cable connecting 33 countries, significantly enhancing the nation's internet infrastructure.
Since the PCC's formation, several global Bitcoin miners and data infrastructure firms have expressed interest, with many visiting Pakistan for exploratory discussions. The government expects increased international interest following the latest announcement.
The initiative is expected to create thousands of direct and indirect jobs in fields such as engineering, IT, and data sciences. By leveraging surplus electricity for digital infrastructure, officials hope to modernize the economy and enhance returns on energy investments.
Pakistan's digital economy stands to benefit significantly from this move. With an estimated 15 to 20 million cryptocurrency users, the establishment of local AI data centers could enhance data sovereignty, strengthen cybersecurity, and improve digital service delivery across the country.
While the initiative presents economic opportunities, it also raises environmental and regulatory considerations. Bitcoin mining is known for its high energy consumption, and Pakistan's energy mix includes a significant portion of fossil fuels. However, the government plans to incorporate renewable energy sources, such as wind, solar, and hydropower, in future phases of the project.
The establishment of a regulatory framework is crucial to ensure the initiative's success. The PCC is working on developing regulations to oversee the mining industry and ensure international standards are met.
Pakistan's decision to allocate surplus electricity to Bitcoin mining and AI data centers marks a significant shift in the country's approach to energy and technology. By converting underutilized power capacity into a high-value asset, the government aims to drive innovation, attract foreign investment, and create employment opportunities. As the initiative unfolds, Pakistan positions itself at the forefront of the digital revolution, leveraging its strategic advantages to become a global hub for digital infrastructure.
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