Pakistan is working towards making crypto mining more feasible by proposing special electricity tariffs, utilizing its surplus power resources.
Transforming Pakistan's Liabilities to Assets
Local news outlet Dawn reported that Pakistan's Power Division has started consultations with several stakeholders to create attractive electricity tariffs for crypto mining. Power Minister Awais Leghari recently discussed opportunities with Bilal Bin Saqib, the newly formed Pakistan Crypto Council's CEO, to leverage the excess electricity. This initiative aims not only to reduce capacity payments but also to make effective use of the existing resource potential.
Crypto Miners' Electricity Costs
A significant portion of crypto miners' expenditures is on electricity, as mining is highly energy-intensive. Typically, miners spend 60-70% of their earnings on electricity. Pakistan's new electricity tariff plan may appeal to this category of users.
Illegal Crypto Mining Activities Worldwide
There is a global concern regarding electricity theft for crypto mining. In February, TheCoinrise reported about a fire outbreak in Kuala Lumpur, Malaysia, revealing an illegal mining operation. Such incidents occur worldwide, showing how some are trying to profit illegally from crypto mining.
Pakistan's proposal to introduce special tariffs for crypto mining might attract investor attention and promote more efficient utilization of surplus energy. It may also help limit illegal mining operations if crypto mining becomes more accessible and legal.
