Pakistan’s Finance Ministry has allocated 2,000 megawatts of surplus electricity to support Bitcoin mining and AI centers, offering tax incentives to attract global investors as part of its national digital strategy.

Pakistan Introduces Tax Incentive Packages for Bitcoin Miners

On May 25, 2025, Pakistan’s Finance Ministry announced a groundbreaking initiative to allocate 2,000 megawatts (MW) of surplus electricity to Bitcoin mining and AI data centers.

This move is a cornerstone of the country’s national digital transformation strategy, aiming to position Pakistan as a hub for emerging technologies.

The government has introduced a package of tax incentives, including duty exemptions for Bitcoin BTC miners and financial perks for AI centers, to lure international firms. 

The plan was initially outlined by the head of Pakistan’s Crypto Council, Bilal Bin Saqib, who also serves as an adviser to the Finance Minister. Saqib noted that several international delegations have already visited Pakistan in recent months to explore partnerships, signaling strong global interest.

The initiative includes plans to integrate renewable energy sources into mining operations, aiming to balance economic growth with environmental sustainability. This second phase of renewable energy adoption could set a precedent for other emerging economies looking to enter the crypto mining space responsibly. 

The involvement of Changpeng Zhao, Binance’s founder, as a strategic adviser to the Pakistan Crypto Council adds credibility to the initiative. Zhao, despite his legal challenges in the U.S. in 2024, is tasked with supporting blockchain infrastructure and regulatory frameworks.

Source: Pakistan Ministry of Foreign Affairs

A Blueprint for Emerging Economies

Pakistan’s decision to allocate significant power resources to Bitcoin mining could serve as a model for other developing nations with surplus energy. The 2,000 MW allocation is substantial, considering that Bitcoin mining globally consumes around 160 TWh annually, equivalent to the energy usage of some small countries, per the Cambridge Bitcoin Electricity Consumption Index (CBECI) as of May 2025. 

Source: Cambridge

By leveraging its excess electricity, Pakistan aims to attract foreign investment and stimulate economic growth. The tax incentives and duty exemptions are particularly appealing, as they reduce the operational costs for miners, who often face high energy and equipment expenses.

Read more: Bitcoin Recovers to $109K After Trump Delays EU Tariff Deadline

This initiative also aligns with a global trend of state-level adoption of cryptocurrency. For instance, El Salvador’s Bitcoin mining efforts, powered by geothermal energy, have yielded over 2,000 BTC since 2021. Pakistan’s focus on renewable energy in the second phase mirrors such efforts, addressing environmental concerns often associated with mining’s carbon footprint. 

However, challenges remain, including regulatory clarity and infrastructure development, which will be critical to ensuring the initiative’s long-term success. If executed well, Pakistan could not only boost its digital economy but also inspire other nations to follow suit, potentially reshaping the global Bitcoin mining landscape.

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