Pakistan’s Bold Crypto Bet: Govt Eyes Surplus Power for Bitcoin Mining Boom

The Pakistani government is making waves with a groundbreaking plan—using surplus electricity to fuel the booming crypto mining industry. In a move that could redefine Pakistan’s energy and digital asset sectors, officials are working on special electricity tariffs to attract global blockchain-based data centers and crypto miners.

Turning Excess Power Into Digital Gold

According to sources, the Power Division is actively consulting stakeholders to develop a competitive power tariff for crypto-related industries. The objective? To utilize excess electricity without subsidies while reducing capacity payments—a win-win for both the government and potential investors.

Bitcoin mining is notorious for its high energy consumption, with miners spending up to 70% of their earnings on electricity. With Pakistan’s surplus energy, the country could position itself as a crypto-mining hub, provided it ensures a stable power supply.

A Global Race to Mine Crypto

Around the world, governments have taken varying stances on crypto mining. While China outright banned it in 2021 due to environmental concerns, countries like Iran have offered subsidized rates but frequently shut down operations during peak demand. Kazakhstan initially welcomed crypto miners but later imposed higher tariffs and taxes due to energy shortages. Meanwhile, El Salvador is leveraging geothermal energy from volcanoes to power its Bitcoin mining operations.

Pakistan’s approach could set it apart—offering competitive power rates without compromising national energy security.

Pakistan Crypto Council Takes Charge

A recent meeting between Power Minister Awais Leghari and Pakistan Crypto Council (PCC) Chief Executive Bilal Bin Saqib highlighted the untapped potential of crypto mining in the country. The council’s inaugural meeting, chaired by Finance Minister Muhammad Aurangzeb, further cemented this vision.

During the discussions, Saqib proposed leveraging Pakistan’s excess electricity to turn liabilities into assets, attracting global crypto miners eager for low-cost energy. The meeting, attended by key financial and regulatory figures, underscored the importance of a clear regulatory framework to unlock the full potential of Pakistan’s digital asset space.

Building a Future-Ready Crypto Economy

The council acknowledged the need to learn from global best practices while tailoring regulations to Pakistan’s unique economic and legal landscape. A roadmap was laid out, emphasizing:

• Establishing a transparent regulatory framework
• Creating a licensing regime for crypto mining
• Developing a national blockchain policy
• Running pilot programs to test the feasibility of large-scale mining operations

The finance minister expressed confidence that Pakistan is entering a new digital era, one that could attract investment, empower youth, and establish the country as a leader in emerging technologies.

The Road Ahead: Innovation or Risk?

While this initiative presents a massive opportunity, its success hinges on execution. Regulatory clarity, international compliance, and power supply stability will be crucial. If managed effectively, Pakistan could emerge as a crypto mining powerhouse. However, missteps could lead to energy mismanagement and policy backlash.

With global miners watching closely, Pakistan’s bold crypto gamble could either redefine its economic landscape—or remain an ambitious experiment. Time will tell if this move turns Pakistan into a digital goldmine or a cautionary tale.