Pakistan is moving towards developing specific electricity tariffs to attract cryptocurrency miners, in a step aimed at harnessing the surplus electricity in the country and boosting digital investments. According to a report published by the newspaper "Dawn," the Ministry of Energy is holding consultations with relevant parties to establish competitive electricity prices for this sector without any government subsidies, aiming to reduce energy payments and utilize the available electricity surplus.
Electricity costs represent the largest factor in cryptocurrency mining operations, accounting for between 60% and 70% of total miners' expenses. With a surplus in electricity production, Pakistan could become an attractive destination for global mining companies, enhancing the country's opportunities to benefit from digital transformation.
In this context, Pakistan's Minister of Energy, Owais Leghari, held a meeting with Bilal Bin Thaqib, the CEO of the Pakistan Crypto Council (PCC), to discuss how to attract global Bitcoin miners to take advantage of the electricity surplus. This came after the inaugural meeting of the council chaired by Finance Minister Muhammad Aurangzeb, which included prominent financial regulatory bodies, where investment potentials in the digital mining sector and the establishment of a clear regulatory framework that contributes to attracting investments and ensuring their sustainability were discussed.
Discussions focused on the importance of adopting best global practices while tailoring them to the economic environment in Pakistan, alongside exploring the development of regulatory legislation for licensing systems, consumer protection, and supporting the blockchain sector. These moves come at a time when the cryptocurrency mining industry is experiencing varying global responses, as China imposed a ban on mining in 2021 due to environmental concerns and energy crises, while Kazakhstan welcomed this activity for a period before imposing high taxes due to pressure on its electricity network. On the other hand, El Salvador adopted a sustainable model by using geothermal energy from volcanoes for Bitcoin mining.
This initiative opens the door for Pakistan to become a new hub for cryptocurrency miners, leveraging its electricity surplus to enhance digital investments and support the mining sector. Experts believe that the success of this approach will depend on the country's ability to provide a clear regulatory environment, encourage investments, and ensure stable electricity prices for miners, potentially making it one of the most attractive destinations in this sector globally.
