Pakistan Allocates 2,000 MW to Boost Bitcoin Mining

Highlights:

• AI and Bitcoin mining operations are set to benefit from 2,000 megawatts of electricity following Pakistan’s government approval.
• The nation’s Finance Ministry said the move forms part of its efforts to attract foreign investments and diversify its economy.
• The new electricity distribution will have two phases, including a renewable energy access source.

On May 25, 24NewsHD TV Channel, a local news media outlet, reported that Pakistan had allocated 2,000 megawatts of electricity to power Bitcoin mining and Artificial Intelligence (AI) centers in the South Asian nation. Pakistan’s finance ministry confirmed the new development, adding that the move is part of the nation’s crypto council’s digital transformation agenda.

The latest development comes a few months after the Pakistan government announced plans to attract Bitcoin miners by utilizing its robust power supply. Crypto2Community captured the story in one of its March 22 publications. According to the report, the government of Pakistan hopes to minimize the nation’s electricity capacity payment and diversify its economy with the initiative.

BREAKING:

🇵🇰 PAKISTAN APPROVES 2,000 MEGAWATTS OF POWER FOR BITCOIN MINING.

BITCOIN IS TAKING OVER! pic.twitter.com/bbqJTZ68uI

— Mister Crypto (@misterrcrypto) May 25, 2025

Electricity Allocation will be in Two Phases

The first phase entails reserving extra electricity exclusively for Bitcoin mining and AI infrastructure facilities. Pakistan hopes to boost its economy by generating revenue from electricity distribution. Muhammad Aurangzeb, Pakistan’s Finance Minister, noted that the initiative will attract billions of dollars from foreign investments. He also mentioned that the development will boost employment opportunities for tech-savvy citizens.

According to the Finance Ministry, Bitcoin miners and AI infrastructure firms have shown strong interest in establishing their subsidiaries in Pakistan. Notably, these companies have visited Pakistan to explore collaboration possibilities with no significant progress.

However, the new electricity distribution will boost the chances of meaningful collaboration among Bitcoin miners, AI firms, and the Pakistani government, according to Bilal Saqib, an AI and Bitcoin mining expert. Saqib also spoke on the need for transparency and formal regulations guiding electricity distribution. He believes that applying these measures will position Pakistan ahead of its peers.

The second phase of electricity allocation involves offering Bitcoin miners renewable energy access to enhance the sector’s sustainability chances. As part of efforts to attract foreign investments, Pakistan’s Minister of Finance said it will exempt Bitcoin miners from duty charges. Also, AI infrastructures will benefit from tax incentives.

PAKISTAN ALLOCATES 2,000 MEGAWATTS TO BTC MINING AND AI AS CRYPTO LEGALISATION BEGINS

Pakistan has designated 2,000 megawatts of power for Bitcoin mining and AI data centers, aligning with its move to begin legalizing crypto activities.

The commitment signals a national push… pic.twitter.com/YaeT1XfMFb

— Crypto Town Hall (@Crypto_TownHall) May 25, 2025

Pakistan Government Shows Support for Crypto and Blockchain Advancement

In late March, Pakistan’s government announced plans to establish a clear regulatory framework for trading crypto and other digital assets. Pakistan Crypto Council (PCC) Chief Executive Officer (CEO) said the nation will no longer be inactive in crypto-related deals.

Saqib stated:

“We want Pakistan as the leader in blockchain-powered finance, and we want to attract international investment. 60% of the population is under 30 years old, we have a Web3-native workforce ready to build.”

Meanwhile, Pakistan’s Ministry of Finance launched the Pakistan Digital Assets Authority (PDAA) on May 21. Notably, PADA’s regulatory role will cut across crypto trading platforms, custodians, stablecoins, Decentralized Finance (DeFi) applications, etc.

Bitcoin Mining Recognition Soars

Earlier this month, Eric Trump acknowledged the widespread interest in Bitcoin. He noted that almost everyone wants to own the asset class for the long term, which could induce scarcity. The US president’s son also noted that while individuals aggressively buy BTC, American Bitcoin remains committed to acquiring BTC at discounted prices via mining. For context, Eric Trump co-founded American Bitcoin, a subsidiary of Hut8.

Eric Trump stated:

“It’s a race to the top right now, and there are a lot of people running fast. I promise you we are going to beat them.”