- Pakistan plans special power rates to attract Bitcoin mining investments.
- Officials discuss policies to turn surplus electricity into crypto revenue.
- Clear regulations aim to make Pakistan a key player in crypto mining.
Pakistan is formulating policies to utilize its surplus electricity for Bitcoin mining. The government is working on introducing specific electricity tariffs for mining operations, aiming to generate economic benefits while managing excess power capacity.
Strategic Policy for Bitcoin Mining
Pushpendra Singh posted on X that Pakistan is taking structured steps toward Bitcoin mining integration. The Power Division is collaborating with stakeholders to design electricity tariffs that cater to mining industries without requiring government subsidies. Authorities are focusing on converting excess electricity into a productive asset rather than letting it remain unused.
Power Minister Awais Leghari recently met with Bilal Bin Saqib, CEO of the Pakistan Crypto Council (PCC), to explore avenues for attracting global cryptocurrency miners. Since mining operations allocate up to 70% of their revenue to electricity costs, Pakistan’s surplus power presents a cost-effective opportunity for large-scale operations.
Regulatory Developments and Stakeholder Engagement
Finance Minister Muhammad Aurangzeb presided over a high-profile meeting with the financial regulators and industry stakeholders to discuss the regulation of Bitcoin mining. The Pakistan Crypto Council outlined plans to use Bitcoin mining to create economic value. The development of regulations, the framework of the licenses, and consumer protection aspects were the focus of discussions.
Top-notch participants at the meeting were State Bank Governor Jameel Ahmad, Securities and Exchange Commission Chief Akif Saeed, and federal IT and law ministry officials. Clear regulatory rules and licensing policies were necessary for sustainable growth within the crypto-mining sector.
World Trends and Pakistan’s Economic Outlook
Countries around the world have adopted dual approaches to Bitcoin mining. In 2021, China banned the industry to counter power shortages, while Kazakhstan initially welcomed miners but raised tariffs and restricted them subsequently. Iran provides low-cost electricity but goes on a shutdown when power is in high demand. El Salvador uses geothermal energy to power renewable mining operations.
In December 2024, Pakistan registered a $582 million current account surplus, almost doubling last year’s. Bitcoin mining is viable for the government as an option for economic growth, provided there is a stable power supply, regulatory clarity, and a robust infrastructure.
