Pakistan to Boost Bitcoin Mining and AI with Major Energy Allocation
By: Isha Das
Pakistan is preparing to enhance its national crypto and technology sectors by allocating 2,000 megawatts (MW) of electricity to Bitcoin mining and artificial intelligence (AI) data centers. This move is part of a broader strategy aimed at modernizing the country's technological infrastructure and attracting foreign investment. According to reports, three underutilized coal-powered plants, which are currently operating at just 15% capacity, will be repurposed to support this initiative. By channeling a portion of this energy towards Bitcoin mining, Pakistan is set to produce an estimated 17,000 BTC annually, as highlighted by Bitcoin mining researcher Daniel Batten. This development could stimulate regional competition, with neighboring countries like India potentially following suit.
The government's ambition to legalize cryptocurrencies and bolster blockchain technologies is evidenced by several strategic initiatives. Recently, the Prime Minister appointed Bilal Bin Saqib, CEO of the Pakistan Crypto Council, as a special assistant on blockchain and crypto matters. Saqib will serve in this role as a minister of state without salary, reflecting the seriousness of Pakistan's commitment to embracing digital finance innovation. Since the initiative's inception, Pakistan has taken significant strides, such as appointing Binance founder Changpeng Zhao as an advisor and partnering with World Liberty Financial to drive blockchain adoption.
However, Pakistan's aggressive push into the crypto domain comes amidst an active $2.1 billion loan agreement with the International Monetary Fund (IMF). The IMF has expressed concerns regarding financial risks associated with exposure to Bitcoin, particularly for countries under its programs. Pakistan joins other nations like El Salvador and Kenya, which have pursued Bitcoin-related projects despite IMF warnings. These countries continue to expand their crypto portfolios, suggesting a growing trend toward digital asset adoption as a tool for economic revitalization despite external pressures.
As Pakistan advances its digital agenda, it is poised to reshape its economic landscape by integrating advanced digital technologies and cryptocurrencies into its existing financial and industrial frameworks. The country's strategic allocation of energy resources for Bitcoin mining and AI not only signals a pivotal shift towards digital modernization but also an opportunity for increased foreign investments and enhanced technical capabilities.
