Pakistan is looking into Bitcoin mining to make use of its excess electricity and develop a regulated digital asset industry. The government plans to introduce attractive electricity tariffs for crypto mining and blockchain data centers.
This initiative aims to encourage industries to utilize surplus energy. The new tariffs will be market-based and not dependent on government subsidies. By doing this, the government hopes to lower payments to power producers for unused energy.
Bitcoin’s electricity consumption is significant, estimated between 137 and 175 TWh from January 2024 to February 2025. Miners often spend 60-70% of their earnings on electricity. This high energy demand makes crypto mining a potential solution for Pakistan’s excess power generation issues.
Recently, Awais Leghari, the Federal Minister of Energy, met with Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC). They discussed how global crypto miners could benefit from Pakistan’s surplus electricity.
The PCC held its first meeting, chaired by Finance Minister Muhammad Aurangzeb. Saqib mentioned that Pakistan is working on a regulatory framework for digital assets to attract global investment and promote local crypto development.
Countries have different approaches to crypto mining. Russia is currently appealing for miners due to its abundant natural gas and hydropower. In August 2024, President Putin legalized crypto mining, allowing registered entities to mine. Individuals can also mine without registration if they stay within energy consumption limits.
In the United States, states like Texas and Wyoming have created favorable regulations for crypto mining, making them attractive locations. They are increasingly using renewable energy sources like wind and solar for mining operations.
Conversely, China, which was once a leading mining hub, banned cryptocurrency mining in 2021. Despite this, it still accounts for 55% of Bitcoin’s global hashrate through underground operations, according to CryptoQuant CEO Ki Young Ju.
