Pakistan’s Plan to Use Surplus Electricity for Crypto Mining: Opportunities and Challenges

The Pakistani government is considering utilizing its surplus electricity to power cryptocurrency mining operations, aiming to attract blockchain-based data centers and stimulate the digital asset industry.
Officials are developing a specialized electricity tariff structure designed to incentivize crypto miners to operate within Pakistan, while ensuring that this initiative does not place an undue burden of subsidies on the national grid.
Sources within the Power Division have revealed that ongoing consultations with stakeholders are focused on creating a cost-effective electricity tariff for the crypto mining sector. This move is expected to help absorb the country’s excess power production and potentially reduce capacity payments made to independent power producers (IPPs).
A government official familiar with the matter stated 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 persist regarding the reliability of Pakistan’s power infrastructure and its capacity to provide a stable and uninterrupted electricity supply for large-scale crypto mining operations.
How Other Countries Manage Crypto Mining
Globally, Bitcoin mining is notorious for its high energy consumption, requiring over 130 terawatt hours (TWh) annually—exceeding the entire electricity usage of countries like Argentina or the Netherlands. Due to these energy demands, various countries have adopted diverse regulatory approaches:
China: Once a 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 welcoming miners, Kazakhstan later imposed high electricity tariffs and taxes due to increasing 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 effort to balance economic opportunity with energy management, avoiding outright bans while ensuring the sustainable use of power resources.
Role of the Pakistan Crypto Council (PCC)
The newly established Pakistan Crypto Council (PCC) has played a pivotal role 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 surplus electricity can be leveraged for Bitcoin mining.
Subsequently, Finance Minister Muhammad Aurangzeb chaired the PCC’s inaugural meeting, where the council outlined its vision for integrating cryptocurrency into Pakistan’