KARACHI: The Pakistani government has allocated 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power bitcoin mining and Artificial Intelligence (AI) data centers, the finance ministry announced on Sunday, in a push to transform Pakistan into a global leader in digital innovation.

The initiative is spearheaded by the Pakistan Crypto Council (PCC), a government-backed body under the Ministry of Finance, as part of a broader strategy to monetize surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment.

Pakistan is uniquely positioned, both geographically and economically, to become a global hub for data centers, and offers the most strategic location in the world for data flow and digital infrastructure as a bridge between Asia, Europe, and the Middle East.

Pakistan’s combination of surplus power, geographic advantage, advanced subsea cable connectivity, renewable energy potential, and a large, digitally engaged population creates a compelling case for becoming a regional epicenter of Web3, AI, and digital innovation.

“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,” Finance Minister Muhammad Aurangzeb was quoted as saying by his ministry.

Since the inception of the PCC, there has been tremendous interest from global bitcoin miners and data infrastructure companies, and several international firms have already visited Pakistan for exploratory discussions, according to the finance ministry. Following this landmark announcement, more global players are expected to visit in the coming weeks.

It said Pakistan’s underutilized power generation capacity is now being repurposed into a high-value digital asset.

“AI data centers and Bitcoin mining operations, known for their consistent and heavy energy usage, provide an ideal use case for this surplus,” the ministry said. ‘Redirecting idle energy, especially from plants operating below capacity, allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity.”

PCC CEO Bilal bin Saqib emphasized the transformative nature of this initiative, saying Pakistan could become a global crypto and AI powerhouse with proper regulation, transparency, and international collaboration.
“This energy-backed digital transformation not only unlocks high-value investment but enables the government to generate foreign exchange in USD through bitcoin mining,” he said.

“Additionally, as regulations evolve, Pakistan can accumulate bitcoin directly into a national wallet, marking a monumental shift from selling power in Pakistani Rupees (PKR) to leveraging digital assets for economic stability.”

In April, Pakistan introduced its first-ever policy framework to regulate virtual assets and service providers, aligning with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF). The move followed the establishment of the PCC in March to create a legal framework for cryptocurrency trading in a bid to lure international investment.

With the right incentives, strategic investments, and collaborative partnerships, Pakistan is positioning itself not only as a destination for global digital infrastructure but also as a sovereign economy that can accumulate digital assets, export digital services, and lead in the next generation of technological transformation.

“By offering stable and affordable energy, Pakistan presents a highly competitive environment compared to regional counterparts like India and Singapore, where rising power costs and land scarcity limit scalability,” the finance ministry said.

“Pakistan’s strategic advantage is further underscored by the global context: while AI data center demand has soared to over 100GW, global supply remains around 15GW. This massive shortfall creates an unprecedented opportunity for countries like Pakistan with surplus power, land, and an emerging regulatory framework.”

Pakistan’s digital connectivity has also been significantly strengthened by the landing of the world’s largest submarine Internet cable. The Africa-2 Cable Project, a 45,000-kilometer global network connecting 33 countries through 46 landing stations, has now landed in Pakistan. This milestone enhances Pakistan’s Internet bandwidth, latency, and resilience through redundant fiber routes — key for ensuring high availability and operational continuity for AI data centers.

With a population of over 250 million and more than 40 million crypto users, Pakistan holds immense potential as a regional leader in digital services, according to the finance ministry.

Establishing local AI data centers will not only address growing concerns around data sovereignty but will also enhance cybersecurity, improve digital service delivery, and empower national capabilities in AI and cloud infrastructure. These centers are expected to create thousands of direct and indirect jobs, catalyzing the development of a skilled workforce in engineering, IT, and data sciences.

“This announcement marks only the first phase of a broader, multi-stage digital infrastructure rollout. Future developments are expected to include renewable energy-powered facilities — leveraging Pakistan’s immense wind (50,000 MW potential in the Gharo-Keti Bandar corridor), solar, and hydropower resources — strategic international partnerships with leading blockchain and AI companies, and the establishment of fintech and innovation hubs,” the ministry said.

“These efforts will be complemented by proposed incentives such as tax holidays, customs duty exemptions on equipment, and reduced taxes for AI infrastructure developers.”

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday embarked on a five-day tour of Turkiye, Iran, Azerbaijan and Tajikistan to thank their leadership for supporting Islamabad during this month’s military conflict with India, Sharif’s office said.

Pakistan and India this month traded missile, drone and artillery strikes for days, killing around 70 people on both sides, before agreeing to a United States-brokered ceasefire on May 10. The conflict, the worst between the neighbors in decades, was triggered by an attack on tourists in Indian-administered Kashmir on April 22 that New Delhi blamed on Pakistan. Islamabad denies complicity.

During the standoff, several friendly nations supported Pakistan’s demand for a credible, international probe into the attack as they urged the nuclear-armed archfoes to exercise restraint and avoid miscalculation of the other’s military capabilities.

On Sunday, Sharif left for Turkiye on the first leg of his four-nation tour, accompanied by Deputy Prime Minister and Foreign Minister Ishaq Dar, Federal Minister for Information and Broadcasting Attaullah Tarar and Special Assistant Tariq Fatemi.

“During the tour, the prime minister will have wide-ranging discussions with the leaders of these countries on an entire range of issues covering bilateral relations and matters of regional and international importance,” Sharif’s office said.

“He will thank friendly countries for the support they have given to Pakistan during the recent crisis with India.”

Bitter rivals India and Pakistan have fought three wars, including two over the disputed region of Kashmir, since gaining independence from British rule in 1947. Both claim the Himalayan territory in its entirety but rule it in part. The conflict had raised fears that it could spiral into a full-blown war.

Both countries have separately announced sending delegations to key capitals and friendly countries to present their stance on this month’s standoff before the world, in a bid to gain world support.

During his visit aimed at furthering Pakistan’s diplomatic outreach, Sharif will also attend an International Conference on Glaciers in Dushanbe, Tajikistan on May 29-30, according to the Sharif’s office.

The conference aims to advance global efforts in climate adaptation and resilience, with a specific focus on addressing glacial melting.

Pakistan is highly vulnerable to climate change, facing numerous impacts like rising temperatures and increased frequency of extreme weather events.

Officials say unusually high temperatures in Pakistan’s northern areas have resulted in rapid melting of glaciers, warning that the prolonged phenomenon could lead to water shortages and threaten lives in the long run.