Pakistan Plans Special Electricity Tariffs to Attract Crypto Miners

Pakistan is developing a scheme to entice bitcoin mining operations with special electricity pricing. Utilizing the nation’s excess power producing capability without the need for subsidies is the aim. In order to set competitive electricity rates for the sector, the Power Division is negotiating with stakeholders, Dawn said.

Electricity usually accounts for 60–70% of cryptocurrency miners’ revenue. Pakistan could provide miners with substantial cost advantages because to its existing excess power. This action supports initiatives to lower capacity payments, which are fees assessed to electricity producers for electricity that is not used.

Discussions with Crypto Leaders and Financial Authorities

Recently, Power Minister Awais Leghari held discussions with Bilal Bin Saqib, the CEO of the newly formed Pakistan Crypto Council (PCC). The meeting explored opportunities for global crypto miners to benefit from Pakistan’s affordable electricity. Following this, the PCC’s inaugural session took place under the leadership of Finance Minister Muhammad Aurangzeb, with financial regulators also present.

During the meeting, Saqib outlined a vision for “leveraging Pakistan’s surplus electricity for Bitcoin mining, potentially turning the country’s liabilities into assets.” The participants highlighted the country’s untapped potential in the crypto sector and agreed that regulatory clarity would be essential to its growth.

The council also proposed developing clear frameworks, including legislation and licensing procedures for blockchain mining. Additionally, they emphasized the importance of a national blockchain policy to ensure consumer protection and sustainable growth in the industry.

Pakistan is aware of the global environment even as it seeks to leverage its excess power. Because of worries about energy use, countries like China outlawed Bitcoin mining in 2021. In the meantime, because to electricity shortages, Kazakhstan raised tariffs and levies after originally welcoming miners.

El Salvador, on the other hand, has made Bitcoin legal tender and provides miners with inexpensive geothermal energy derived from volcanoes. Pakistan’s strategy is to achieve equilibrium by promoting cryptocurrency investments while upholding regulatory control.

Stakeholders are nevertheless hopeful about the nation’s ability to emerge as a major force in the global bitcoin mining market, even with more developments anticipated.