Pakistan aims to attract cryptocurrency mining operations by offering special electricity tariffs to utilize its surplus power generation capacity.
Context of Tariff Creation
The Power Division of Pakistan is currently in consultation with various stakeholders to develop attractive electricity rates for cryptocurrency mining companies. This initiative aims to utilize the country's excess power production without introducing subsidies and to reduce capacity payments.
Meeting with Crypto Council
Pakistan's Power Minister Awais Leghari recently met with Bilal Bin Saqib, the chief executive of the newly formed Pakistan Crypto Council (PCC), to discuss the opportunities for global crypto miners to leverage Pakistan's surplus electricity. Following this was the inaugural PCC meeting chaired by Finance Minister Muhammad Aurangzeb and attended by key financial regulators. Saqib presented a vision for utilizing Pakistan's surplus electricity for Bitcoin mining, potentially turning the country's liabilities into assets.
Global Crypto Mining Context
Pakistan's approach to cryptocurrency mining comes amidst various countries taking differing approaches to this energy-intensive industry. China, once the global hub for Bitcoin mining, banned the practice in 2021, citing environmental concerns and power shortages. Kazakhstan initially welcomed crypto mining but later imposed higher electricity tariffs and taxes due to energy shortages. Meanwhile, El Salvador, the first country to adopt Bitcoin as legal tender, provides miners with low-cost geothermal energy from volcanoes.
Pakistan is taking steps to create a favorable environment for cryptocurrency miners by offering special electricity tariffs and working on sector regulation, potentially leading to new economic development given the country's surplus energy capacity.
