Pakistan is formulating special electricity tariffs aimed at drawing crypto mining and blockchain-based data centres to the country, seeking to capitalise on its surplus power generation and reduce mounting capacity payments without resorting to subsidies, Dawn reported this, citing sources.
According to the news report, discussions are ongoing between Federal Minister for Energy Awais Leghari and Bilal Bin Saqib, CEO of the newly formed Pakistan Crypto Council (PCC), regarding the feasibility of attracting international mining operations to Pakistan. Both sides are exploring how global crypto firms could tap into the country’s excess power capacity to establish mining and data infrastructure.
The Power Division has also begun consultations with stakeholders to craft a dedicated power tariff structure for emerging digital sectors such as cryptocurrency mining.
The initiative is intended to offer electricity at marginal rates, making use of idle capacity in the grid while supporting the growth of energy-intensive industries.
Bitcoin mining globally is a power-heavy process, with miners often spending 60 to 70 per cent of their revenue on electricity. The industry’s estimated annual power consumption exceeds 130 terawatt-hours (TWh), which is more than the total electricity used by countries such as Argentina or the Netherlands.
Pakistan’s surplus electricity presents a potential advantage, though stable supply remains a key concern.
Several countries have adopted tailored policies in response to the electricity demands of crypto mining. China, once the global hub for mining, banned the practice in 2021 due to power shortages and environmental concerns.
Iran offers subsidised rates but frequently shuts down mining during peak demand. Kazakhstan, after initially encouraging crypto operations, imposed higher tariffs and taxes when faced with energy constraints. Meanwhile, El Salvador supports crypto mining using low-cost geothermal energy.
