Pakistan Plans Bitcoin Mining with Surplus Electricity

• Pakistan seeks to attract companies with special tariffs for Bitcoin mining.
• The country uses surplus energy to reduce costs in cryptocurrency mining.
• Energy stability is crucial to the success of the initiative.

Pakistan is devising strategies to use its surplus electricity for cryptocurrency mining, with a particular focus on Bitcoin, in a bid to attract blockchain technology companies. Sources say the country is in the process of drafting special tariffs to become an attractive hub for the industry.

Pakistani authorities recently discussed with various stakeholders the implementation of crypto and blockchain data centers that will harness surplus energy at marginal costs. This initiative aims to catalyze the development of the crypto sector in the country without the need for additional subsidies. It is estimated that cryptocurrency miners in Pakistan currently spend around 70% of their total income on electricity alone.

The country’s energy division aims to set attractive tariffs for emerging sectors to absorb excess power and reduce energy costs for these firms. “The challenge will be to balance the energy supply to ensure the stability needed to attract more investment in this field,” sources said.

Bitcoin mining, known for its high energy consumption, has led several countries to adopt specific measures against this activity. For example, while some nations have implemented special tariffs for mining, others, such as China, have chosen to ban the practice altogether due to environmental concerns and energy shortages. Similarly, Iran provides subsidized electricity to miners, but often shuts down operations during peak consumption periods.

In the same context, Kazakhstan, which had embraced cryptocurrency mining, is now facing challenges with growing energy shortages, resulting in higher tariffs and increased taxation for the sector.