- The CEO of the CCP says that Pakistan can become a global crypto, Ai Powerhouse.
- Finmin calls him a pivotal moment in the digital transformation course.
- Several Int’L companies have visited the country for exploratory discussions.
In a major step towards the positioning of Pakistan as a global digital innovation center, the government allocated 2,000 megawatts (MW) of electricity in the initial phase of a national plan to support Bitcoin extraction and artificial intelligence data centers (AI).
According to a press release published by the Finance Division, the initiative is led by Pakistan Crypto Council (PCC) – an organization supported by the government under the Ministry of Finance – as part of a broader strategy to monetize excess electricity, create high -tech jobs, attract billions of dollars into foreign investment and generate billions of dollars for the government.
“The Minister of Finance, Muhammad Aurangzeb, said that this strategic allowance marks a central moment in the digital transformation path of Pakistan, unlocking economic potential by transforming excess energy into innovation, investment and international income,” said the press release.
Pakistan, a country that has ranked 3rd in the global cryptography adoption index, has 20 million active cryptocurrency users and $ 20 billion + in cryptographic transactions.
Currently, the country ranks in the top 10 in terms of the adoption of cryptography. With $ 35 billion in annual funds, the country is about to benefit from the adoption of cryptography.
In March of this year, the government formed Pakistan Crypto Council (CPC) to “regulate and integrate blockchain technology and digital assets” in the country’s financial ecosystem.
The entrepreneur Bilal Bin Saqib was appointed CEO, reporting a commitment to integrate cryptocurrency and blockchain technology in the country’s financial ecosystem.
“Pakistan is only positioned – both geographically and economically – to become a world center for data centers. As a digital bridge between Asia, Europe and the Middle East, Pakistan offers the most strategic location in the world for data flow and digital infrastructure,” said finance division in its declaration today.
He said that since the creation of the CPC, there has been a huge interest on the part of the world’s Bitcoin minors and data infrastructure companies. Several international companies have already visited the country for exploratory discussions, and after this historic announcement, more global players should visit in the coming weeks.
“The underused electricity production capacity of Pakistan is now reused in a high-value digital asset. AI data centers and Bitcoin extraction operations, known for their coherent and heavy energy consumption, provide an ideal use case for this surplus.
“The redirection of inactive energy, in particular factories operating below the capacity, allows Pakistan to convert a longtime financial responsibility into a lasting opportunity and revenue generator,” added the press release.
In the declaration, the CEO of CPC, Bilal Bin Saqib, underlined the transforming nature of this initiative and explained that with good regulations, transparency and international collaboration, Pakistan can become a global crypto and a power of AI.
He added that this digital transformation supported by energy unlocks not only high -value investments, but allows the government to generate foreign currency in US dollars thanks to Bitcoin exploitation.
In addition, as regulations are evolving, Pakistan can accumulate bitcoin directly in a national portfolio – marking a monumental passage of sales power in Pakistani rupees to take advantage of digital assets for economic stability.
By offering a stable and affordable energy, Pakistan has a highly competitive environment compared to regional counterparts such as India and Singapore, where the increase in electricity costs and the scalability of the scarcity of land.
The strategic advantage of Pakistan is also underlined by the global context, because if the demand for the AI data center has climbed more than 100 gigawatts (GW), the world supply remains around 15 GW. This massive lack creates an unprecedented opportunity for countries like Pakistan with a surplus of power, land and an emerging regulatory framework, he added.
The declaration noted that the country’s digital connectivity has also been considerably reinforced by the landing of the largest underwater internet cable in the world. The CABLE Project Africa-2, a global network of 45,000 kilometers connecting 33 countries to 46 landing stations, has now landed in Pakistan.
This step improves the Internet bandwidth of Pakistan, latency and resilience through redundant fiber tracks – key to guarantee high availability and operational continuity for AI data centers.
With more than 40 million crypto users, Pakistan has immense potential as a regional leader in digital services. The establishment of local AI data centers will not only respond to increasing concerns concerning data sovereignty, but will also improve cybersecurity, will improve the provision of digital services and will empower national capabilities in AI and cloud infrastructure.
These centers should create thousands of direct and indirect jobs, catalyzing the development of a skilled workforce in engineering, computer science and data sciences.
The declaration added that this announcement only marks the first phase of a deployment of digital infrastructure in several larger steps. Future developments should include installations fueled by renewable energies – by taking advantage of the immense wind of Pakistan (potential of 50,000 MW in the Gharo -Tketi Bandar corridor), solar and hydroelectric resources – as well as strategic international partnerships with the main blockchain and AI companies, and the establishment of fintech centers and innovation.
These efforts will be supplemented by proposed incentives such as tax holidays, exemptions from customs duties to equipment and tax reduction for IA infrastructure developers, he added.
“The combination of Pakistan of excess power, more geographical, of advanced cable connectivity, of renewable energy potential and a large population engaged numerically creates a convincing case to become a regional epicenter of web3, AI and digital innovation.
“With the right incentives, strategic investments and collaborative partnerships, Pakistan is positioned not only as a destination for global digital infrastructure, but also as a sovereign economy that can accumulate digital assets, export digital services and direct into the next generation of technological transformation.”
The allowance is part of Islamabad’s plans to use its excess electricity for bitcoin extraction and AI data centers. The Pakistan energy sector is struggling with challenges, including high electricity prices and a surplus production capacity.
The rapid expansion of solar energy has further complicated the landscape, while more and more consumers are turning to alternative energy sources to mitigate high costs.
– with an additional reuters input
