Pakistan has initiated a unique project to repurpose 2000 MW of surplus electricity, mainly from coal plants operating at just 15% capacity. This energy will be channeled towards Bitcoin mining farms and AI data centers.
Building a Digital Economy Engine
The plan is backed by the Pakistan Crypto Council (PCC), chaired by Finance Minister Muhammad Aurangzeb. PCC is also working on a regulatory framework, including a national Bitcoin wallet and a Digital Assets Authority.
Risks and Rewards
Potential benefits include converting idle capacity into revenue and creating tech jobs while attracting foreign investments. However, there are concerns regarding environmental impacts and grid stability.
Support Measures and Their Significance
Tax incentives and duty exemptions for mining equipment are part of the strategy to attract international investors. Nonetheless, the IMF-backed loan program may object to subsidizing energy for mining.
Pakistan's plan to leverage surplus electricity for digital technologies represents an ambitious step that could both strengthen the economy and introduce environmental and administrative challenges.
