Pakistan is developing special electricity tariffs to attract cryptocurrency mining operations, leveraging its surplus power generation capacity to boost the industry. The initiative, currently under discussion by the Power Division, aims to offer competitive electricity rates to crypto miners without introducing subsidies.
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Tapping into Surplus Energy for Bitcoin Mining
Pakistan has a surplus electricity situation, which presents a unique opportunity to attract miners, who typically spend 60-70% of their earnings on energy costs. The proposed tariff plan seeks to reduce capacity payments while making the country an attractive hub for large-scale Bitcoin mining.
Power Minister Awais Leghari recently met with Bilal Bin Saqib, CEO of the newly formed Pakistan Crypto Council (PCC), to discuss the potential for global miners to utilize Pakistan’s excess electricity. This was followed by the PCC’s inaugural meeting, chaired by Finance Minister Muhammad Aurangzeb and attended by key financial regulators.
Regulatory Framework in the Works
During the meeting, Saqib outlined a vision for transforming Pakistan’s electricity surplus into a profitable asset through Bitcoin mining. The discussion emphasized the need for regulatory clarity, consumer protection policies, and a well-defined licensing framework to ensure a sustainable and legal crypto mining ecosystem.
The PCC also agreed to study global best practices while tailoring regulations to fit local conditions. The country’s approach to crypto mining stands in contrast to policies in other nations:
- China banned Bitcoin mining in 2021 due to power shortages and environmental concerns.
- Kazakhstan initially welcomed miners but later imposed higher taxes and electricity tariffs.
- El Salvador has incentivized mining operations by providing access to low-cost geothermal energy from volcanoes.
As Pakistan moves forward with its plans, it remains to be seen whether the new tariffs will successfully position the country as a key player in the global Bitcoin mining industry.
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