Pakistan unveils a national strategy for a large-scale power allocation plan of 2000MW for Bitcoin Mining and more.

## Towards Bold Policy Implementation

The Pakistani government announced on the 25th a plan to allocate 2,000 megawatts (MW) of power for Bitcoin mining and AI data centers. This plan is positioned as the first stage of a national strategy to utilize the country's surplus electricity and accelerate economic revitalization and entry into the digital economy.

According to a statement from the financial bureau, this initiative is led by the Pakistan Cryptocurrency Council (PCC) and is part of a broad strategy to monetize surplus electricity, create high-tech related jobs, attract billions of dollars in foreign direct investment, and generate billions of dollars in revenue for the government.

A scale of 2,000 MW is estimated to account for about 10.3% of global Bitcoin mining power and approximately 10.2% (66 EH/s) in terms of hash rate. This is comparable to Texas (2,500 MW) and represents an extremely large-scale effort as a single nation’s strategy. Internationally, it exceeds the scale of existing mining powerhouse Kazakhstan (1,500 MW) and is an unprecedented investment scale for a new entrant.

In Pakistan, it will account for about 4.65% of the total power generation capacity (43,000 MW) and 40% of the surplus power (5,000 MW), which will have a considerable influence on the domestic power supply system. For Pakistan, the effective utilization of surplus power to earn foreign currency (approximately 5.17 billion yen annually) and create jobs is an innovative approach to simultaneously solve the issues of power surplus and economic challenges.

On the other hand, there are concerns about power shortages in winter and revenue risks due to fluctuations in Bitcoin prices. Maintaining an appropriate balance with domestic power demand will likely be a crucial factor affecting the sustainability of this strategy.

Pakistan's Finance Minister Muhammad Aurangzeb emphasized that this plan represents the first important step for the country to transition to a digital economy, stating the following:

This power allocation is not just for cryptocurrencies and AI, but to shape the country's digital future.

The minister also added that surplus electricity can be utilized as a "source of national income."

The background of this plan lies in the challenge of "excess power supply" that Pakistan has faced for many years. The Pakistani government is focusing on Bitcoin mining and AI data centers as the most effective utilization of this surplus electricity. By supporting these industries, which require large amounts of power, they are trying to find a new outlet for the country's excess electricity.

Important hub of digital infrastructure

Pakistan is participating in the world's largest undersea cable construction project "2Africa," which connects Africa, Europe, the Middle East, and Asia. This project is also crucial for the smooth implementation of the recently announced 2,000MW power allocation strategy.

Pakistan faces challenges with internet connection speed and stability, but this submarine cable is expected to expand Pakistan's bandwidth, add backup routes, and reduce latency. All of these are essential for data-intensive blockchain and AI operations.

Finance Minister Aulangzeb stated that "Pakistan is uniquely positioned geographically and economically to function as a global hub for data centers," emphasizing the potential for Pakistan to become an important digital bridge connecting Asia, the Middle East, and Europe.

The CEO of the Pakistan Cryptocurrency Council (PCC), Bilal Bin Sakib, pointed out the transformative nature of this initiative. He argued that with appropriate regulations, transparency, and international cooperation, Pakistan could establish itself as a significant global player in cryptocurrency and AI technology.

Additionally, he added that energy-based digital transformation not only attracts high-value investments but also enables the government to earn foreign currency in US dollars through Bitcoin mining.

Role of the Cryptocurrency Council

The PCC was established in March this year with the aim of building a clear regulatory framework, promoting blockchain technology, and ensuring investor protection and financial stability. It has attracted attention as a significant turning point in the stance of the Pakistani government, which had previously been negative towards virtual currencies.

CEO Sakibu stated in an interview with Bloomberg that the emergence of the Trump administration in the U.S. has prompted a focus on cryptocurrencies. He emphasized that the fact that the world's largest economy has begun to view Bitcoin as a "national asset" for economic security, much like gold and oil, cannot be ignored, and that every country, including Pakistan, risks being left behind if they do not follow suit.

In April, Binance founder Changpeng Zhao (CZ) was officially appointed as the strategic advisor of PCC. Aurangzeb, the Finance Minister and Chairman of PCC, commented on CZ's appointment, stating, "We will accelerate the vision of making Pakistan a regional power in Web3, digital finance, and blockchain-led growth."

In the same month, PCC was involved with the cryptocurrency venture "World Liberty Financial (WLF)" associated with the family of President Trump. A partnership has been established with the aim of "accelerating the innovation of blockchain technology and the integration of cryptocurrencies." This agreement positions Pakistan as the "cryptocurrency hub" of South Asia and aims to establish global leadership in the field of digital finance.

After the establishment of PCC, several delegations, including WLF, have begun visiting Pakistan to discuss new opportunities. The Ministry of Finance is considering tax incentives for AI data centers and tax exemptions for Bitcoin miners to promote the development of blockchain infrastructure and AI.

The Cryptocurrency Situation in Pakistan

Pakistan is known as one of the countries with a very high cryptocurrency adoption rate, ranking 9th in the world in the 2024 cryptocurrency adoption index by Chainalysis.

It is estimated that there are currently 20 million active users, and the trading volume has exceeded $20 billion (approximately 2.8 trillion yen).

Pakistan boasts the 5th largest population in the world (approximately 245 million: 2024), with about 60% of its population being under 30 years old, which is a notable characteristic. This demographic actively utilizes smartphones and the internet, showing a high interest in cryptocurrencies and blockchain technology. Additionally, Pakistan faces economic instability, with currency depreciation and soaring inflation rates (over 36% in 2023), which is promoting the adoption of cryptocurrencies as alternative assets.