Pakistan has announced the allocation of 2,000 megawatts of electricity specifically for Bitcoin mining and AI data centers, aiming to monetize its surplus energy and stimulate economic growth.

Senator Muhammad Aurangzeb, the Minister of Finance, highlighted the potential of this initiative to convert surplus power into economic revenue and foreign income through Bitcoin.

This initiative not only focuses on Bitcoin mining but also aims to develop a digital ecosystem that enhances domestic AI capabilities, creates high-skilled job opportunities, and encourages growth in sectors like blockchain and data science.

To oversee Bitcoin mining operations and the monetization of excess energy, a new regulatory body called the Pakistan Crypto Council has been established.

With this move, Pakistan joins other Asian nations like Kazakhstan and Japan, which have implemented legal frameworks for Bitcoin mining to foster economic growth and combat illicit operations.

Pakistan's strategic geographical location between East and West makes it particularly attractive for international data center investments and Bitcoin mining operations.

This strategic initiative aims to repurpose surplus electricity resulting from substantial investments in power infrastructure and reduced industrial activity, transforming idle resources into economic opportunities.

By legalizing and promoting Bitcoin mining, Pakistan seeks to attract both foreign and local investments, generating new tax revenues and increasing foreign exchange reserves.

As a result of this announcement, Bitcoin miner revenue has already risen by 3 percent to 1,200 BTC daily, indicating that miners are preparing for growth.

This decision could also influence Bitcoin's mining hash rate, which stood at 620 EH/s on the same day, potentially affecting associated token prices due to increased mining operations.

Overall, the commitment to allocate 2,000 MW for digital innovation reflects Pakistan's vision for a modern, self-reliant economy that embraces the future of technology.

Despite having surplus energy capacity, Pakistan faces challenges such as high tariffs, prompting a shift towards solar power and renewable energy.