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.
The Power Division of Pakistan is working on a policy that would offer competitive electricity rates for mining operations—without introducing subsidies. The idea is simple: instead of letting extra electricity go to waste, Pakistan wants to monetize its unused power by allowing Bitcoin miners to use it at favorable rates.
Pakistan is actively investigating the potential of utilizing its surplus electricity for Bitcoin mining. Recently, Power Minister Awais Leghari held a meeting with Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC), to discuss strategies for attracting cryptocurrency miners to the country.
Given that mining operations often dedicate as much as 70% of their revenue to electricity expenses, offering competitive power rates could establish Pakistan as an appealing destination for such activities. This idea is gaining traction among senior government officials.
In a recent development, Finance Minister Muhammad Aurangzeb presided over an important meeting with financial authorities and industry experts, highlighting the necessity of developing comprehensive regulations, licensing structures, and consumer safeguards.Â
Pakistan’s move comes at a time when different countries are taking varied approaches to Bitcoin mining. China, which once dominated space, banned it due to energy concerns. Kazakhstan started off welcoming crypto miners, but it didn’t take long before they hit them with higher taxes and tougher rules.
As for Pakistan, December 2024 was a big month, it recorded a $582 million current account surplus, more than double what it was the year before. Pakistan is now looking at Bitcoin mining as a way to make use of its surplus electricity and boost the economy. To succeed in the global crypto mining space, the country needs a reliable power supply, clear regulations, and strong infrastructure. If done right, what was once wasted energy could turn into a valuable economic asset.
Also Read: Pakistan to Legalize Crypto For Foreign Investments: Bloomberg
