Pakistan’s Ministry of Finance has allocated 2,000 megawatts of surplus electricity to support Bitcoin mining and AI centers, providing tax benefits to attract global investors as part of its national digital strategy.
Pakistan introduces tax incentive package for Bitcoin miners
May 25, 2025, Pakistan Ministry of Finance Announce A groundbreaking initiative that allocates 2,000 megawatts (MW) of surplus electricity for Bitcoin mining and AI data centers.
This move is the cornerstone of the country’s national digital transformation strategy, aiming to position Pakistan as a hub for emerging technologies.
The government introduces a set of tax benefits, including taxes on Bitcoin BTC AI center miners and financial allowances to attract international companies.
The plan was originally outlined by Bilal bin Saqib, director of the Pakistan Crypto Commission, who also serves as an advisor to the finance minister. Sachib noted that several international delegations have visited Pakistan in recent months to explore partnerships, which demonstrates strong global interest.
The initiative includes plans to integrate renewable energy into the mining business, aiming to balance economic growth with environmental sustainability. The second phase of renewable energy adoption may set a precedent for other emerging economies who want to responsibly enter the crypto mining space.
Binance founder Changpeng Zhao’s involvement as strategic advisor to the Pakistan Crypto Commission adds to the credibility of the program. Despite facing legal challenges in the United States in 2024, Zhao’s mission is to support the blockchain infrastructure and regulatory framework.
Source: Pakistan Ministry of Foreign Affairs
Blueprint for emerging economies
Pakistan’s decision to allocate large amounts of electricity to Bitcoin mining can serve as a model for other developing countries with surplus energy. Considering the Cambridge Bitcoin Power Consumption Index (CBECI) as of May 2025, the allocation of 2,000 MW is substantial, given that the Bitcoin mining annually consumes approximately 160 TWH per year, equivalent to energy use in some small countries.
Source: Cambridge
By leveraging its excessive electricity, Pakistan aims to attract foreign investment and stimulate economic growth. Tax benefits and tax exemptions are particularly attractive because they reduce operating costs for miners who often face high energy and equipment costs.
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The initiative is also in line with the global trend of adoption of cryptocurrencies. For example, Bitcoin mining efforts in El Salvador are powered by geothermal energy and have generated more than 2,000 BTC since 2021. Pakistan’s focus in the second phase mirroring is this effort to address environmental issues related to the mining carbon footprint.
However, challenges remain, including regulatory clarity and infrastructure development, which are crucial to ensuring the long-term success of the program. If executed well, Pakistan can not only promote its digital economy, but also inspire other countries to follow suit and possibly reshape the global Bitcoin mining landscape.
