Govt moves to turn idle power into digital gold

In a ground-breaking move to transform Pakistan into a global leader in digital innovation, the government allocated 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power Bitcoin mining and artificial intelligence (AI) data centres, said a press release on Sunday.

This initiative, spearheaded by the Pakistan Crypto Council (PCC), which works under the Finance Ministry, is part of a broader strategy to monetise surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment (FDI), and generate billions of dollars for the government.

According to Finance Minister Muhammad Aurangzeb, the press release stated, this strategic allocation marked a pivotal moment in Pakistan's digital transformation journey, unlocking economic potential by turning excess energy into innovation, investment, and international revenue.

"Pakistan is uniquely positioned — geographically and economically — to become a global hub for data centres. 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 the press release

Since its inception, the PCC has evoked tremendous interest from global Bitcoin miners and data infrastructure companies. Several international firms have already visited Pakistan for exploratory discussions, the report added.

"Following this landmark announcement, more global players are expected to visit in the coming weeks," read the press release. "Pakistan's underutilised power generation capacity is now being repurposed into a high-value digital asset."

According to the press release, AI data centres and Bitcoin mining operations, known for their consistent and heavy energy usage, provided an ideal use case for this surplus. "Redirecting idle energy, especially from plants operating below capacity, allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity," it said.

PCC Chief Executive Officer (CEO) Bilal Bin Saqib, while emphasising the transformative nature of the initiative, said that Pakistan could become a global crypto and AI powerhouse with proper regulation, transparency, and international collaboration.

As regulations evolve, he said, "Pakistan can accumulate Bitcoin directly into a national wallet, marking a monumental shift from selling power in Pakistani rupees to leveraging the digital assets for economic stability".

With more than 40 million crypto users, Pakistan holds immense potential as a regional leader in digital services. Establishing local AI data centres will not only address growing concerns around data sovereignty but also enhance cybersecurity and improve digital service delivery, the press release said.