The Pakistani government is considering using its surplus electricity to power cryptocurrency mining operations, aiming to attract blockchain-based data centers and boost the digital asset industry.

Officials are working on a special electricity tariff structure that will encourage crypto miners to operate in Pakistan while ensuring that the initiative does not burden the national grid with subsidies.

Sources within the Power Division revealed that consultations are underway with stakeholders to devise a cost-effective electricity tariff for the crypto mining sector. The move is expected to help absorb the country’s excess power production while potentially reducing capacity payments made to independent power producers (IPPs).

A government official familiar with the matter said that Bitcoin mining alone accounts for 60-70% of total operational costs in electricity consumption, making Pakistan an attractive destination due to its surplus energy supply. However, concerns remain over the reliability of Pakistan’s power infrastructure and whether it can provide a stable and uninterrupted electricity supply to large-scale crypto mining operations.

How other countries handle crypto mining

Globally, Bitcoin mining is notorious for its high energy consumption, requiring over 130 terawatt hours (TWh) annually—more than the entire electricity usage of countries like Argentina or the Netherlands. Due to these energy demands, various countries have taken different regulatory approaches:

• China: Once the global leader in Bitcoin mining, China banned the practice in 2021, citing environmental concerns and power shortages
  
  
• Iran: The country offers subsidized electricity for crypto miners but frequently halts operations during peak consumption periods to prevent grid overload
  
  
• Kazakhstan: Initially welcomed miners but later imposed high electricity tariffs and taxes due to growing power shortages
  
  
• El Salvador: The first country to adopt Bitcoin as legal tender, El Salvador uses low-cost geothermal energy from volcanoes to power its mining operations

Pakistan’s approach appears to be an attempt to strike a balance between economic opportunity and energy management, avoiding outright bans while ensuring sustainable use of power resources.

Role of the Pakistan Crypto Council (PCC)

The Pakistan Crypto Council (PCC), a newly established industry body, has been instrumental in driving discussions on legalizing crypto mining. Its Chief Executive, Bilal Bin Saqib, met with Energy Minister Owais Leghari to discuss how the country’s excess electricity can be leveraged for Bitcoin mining.

Following this, Finance Minister Muhammad Aurangzeb chaired the PCC’s inaugural meeting, where the council laid out its vision for integrating cryptocurrency into Pakistan’s economy. Key figures at the meeting included:

• Governor of the State Bank of Pakistan (SBP), Jamil Ahmed
  
  
• Chairman of the Securities and Exchange Commission of Pakistan (SECP), Akif Saeed
  
  
• Federal Secretaries from the IT and Law Ministries

During the meeting, Saqib proposed converting Pakistan’s surplus electricity into a revenue-generating asset through Bitcoin mining, rather than letting excess power go to waste.

Regulatory challenges 

A major topic of discussion was the lack of a clear regulatory framework for cryptocurrencies in Pakistan. Saqib emphasized the need to study international regulatory models and adapt them to the local context. The Finance Minister stressed that regulatory clarity is essential for unlocking the full potential of the crypto sector and attracting foreign investment.

The council identified several key priorities, including:

Developing a licensing system for crypto exchanges and blockchain mining firms

Establishing consumer protection laws to prevent fraud and misuse of digital assets

Crafting a national blockchain policy to guide future initiatives

 Launching pilot programs to assess the feasibility of large-scale crypto mining

The PCC aims to collaborate with various institutions that are already working on digital finance, ensuring that their expertise is incorporated into Pakistan’s crypto strategy.

Finance Minister Aurangzeb called the crypto initiative a “new digital chapter” for Pakistan’s economy, with the potential to attract investment, create jobs, and empower youth in emerging technologies.

“We are committed to building a transparent, future-ready financial system that not only fuels innovation but also puts Pakistan on the global map as a leader in blockchain and digital assets,” he said.

As Pakistan moves forward with its crypto mining strategy, it faces both opportunities and challenges. While surplus electricity provides a competitive advantage, power stability and regulatory clarity remain critical factors that will determine the success of the initiative.