HE plans are, no doubt, quite ambitious. Whether or not they are realistic is a different question altogether. For now, there seems to be no foreseeable harm in giving an out-ofthe-box idea a fair shot. Islamabad has announced it will leverage Pakistan`s surplus electricity generation capacity to attract global businesses working in cryptocurrency and artificial intelligence.

According to an announcement by the finance ministry, it has earmarked an initial 2,000 megawatts of electricity from the national grid for AI and crypto ventures. Both AI and crypto are known to consume immense amounts of energy. Pakistan, keen to monetise its surplus capacity, is even willing to offer it at subsidised rates if it means securing a foothold in these emerging industries. Given the heavy financial burden of capacity payments to power producers, this seems like a potentially savvy way to extract value from idle infrastructure. For context, cryptocurrency `mining`the process through which cryptocurrencies are created uses immense computing power. A single Bitcoin, for example, is created when millions of powerful, specialised computers called `mining rigs`work simultaneously to solve a single, complex mathematical problem. Only one of the machines is `rewarded` a coin; the rest of the effort and electricity are wasted.

Similarly, modern AI tools like ChatGPT require massive data centres and powerful computer chips running for weeks or months to train. They then require immense amounts of energy to answer each query, as answers are generated by a huge network of highperformance servers working in sync.

Pakistan`s move to cater to this energy-hungry sector can prove beneficial, provided certain conditions are met. The businesses that decide to relocate to the country under Pakistan`s crypto and AI initiatives should not end up stressing the domestic grid. They must also contribute meaningfully to the country by transferring their technical know-how, investing in developing local human capital, and ensuring that a part of their profits go towards public welfare and not just state patronage. The government, too, must remember that it is using public resources, paid for by ordinary citizens, for this initiative. Its benefits should improve the lives of ordinary Pakistanis, and not just those controlling the levers of the state.

Islamabad must proceed cautiously. It must frame its policies and regulations with a long-term vision in mind. If it does so prudently, this could be the beginning of something transformative.