Pakistan is making a move into crypto mining, aiming to put its extra electricity to good use. With surplus power becoming a challenge, the government is considering special electricity rates to draw in Bitcoin miners and blockchain companies.
Pakistan’s Bitcoin Mining Revolution?
The Power Division of Pakistan is working on a policy that would offer competitive electricity rates for mining operations—without introducing subsidies. Instead of letting excess electricity go to waste, Pakistan wants to monetize its unused power by allowing Bitcoin miners to use it at favorable rates.
Recently, Power Minister Awais Leghari met with Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC), to explore strategies for attracting cryptocurrency miners. Given that mining operations often allocate up to 70% of their revenue to electricity expenses, offering cost-effective power rates could position Pakistan as an attractive destination for the industry.
The idea is gaining traction among senior government officials. Finance Minister Muhammad Aurangzeb recently led a key meeting with financial authorities and industry experts, emphasizing the need for clear regulations, licensing structures, and consumer protections.
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Pakistan’s move comes at a time when global approaches to Bitcoin mining vary. China, once the dominant player, banned mining due to energy concerns. Kazakhstan initially welcomed miners but later imposed stricter regulations and higher taxes.
For Pakistan, December 2024 marked a significant financial milestone, as the country recorded a $582 million current account surplus—more than double the previous year. By embracing Bitcoin mining, Pakistan hopes to leverage its surplus electricity to boost the economy. To compete in the global crypto mining space, the country will need a stable power supply, well-defined regulations, and strong infrastructure. If executed correctly, what was once wasted energy could become a valuable economic asset.
