Pakistan eyes Bitcoin mining to harness surplus energy

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Bitcoins The country aims to become a regional crypto hub by providing stability, scalability, and a transparent regulatory environment.

Pakistan is exploring Bitcoin mining as a way to utilize excess electricity and foster a regulated digital asset industry.

According to a new report from Dawn, Pakistan’s authorities plan to create attractive electricity tariffs specifically for crypto mining and blockchain data centers, aiming to encourage industries to consume surplus energy.

The tariffs will be market-based without relying on government subsidies. The government expects to reduce payments made to power producers for unused energy.

Statista indicates that Bitcoin’s electricity consumption was estimated between 137 and 175 TWh during the period of January 2024 and February 2025. Miners typically spend 60-70% of their earnings on electricity costs.

The extreme energy intensity positions crypto mining as an industry with the potential to alleviate the financial burden of Pakistan’s excess power generation.

Awais Leghari, Federal Minister of Energy, recently met with Pakistan Crypto Council (PCC) Chief Executive Bilal Bin Saqib to discuss opportunities for global crypto miners to benefit from Pakistan’s excess electricity.

The council held its inaugural meeting today, chaired by Finance Minister Muhammad Aurangzeb.

Saqib said in an interview with Bloomberg this week that Pakistan is actively developing a regulatory framework for digital assets to attract global investment and foster local crypto growth.

The PCC is spearheading this effort to integrate blockchain and crypto into the national financial system. Saqib sees Trump’s pro-crypto stance as a catalyst for global crypto adoption.

Bitcoins Diverse approaches to crypto mining

Countries have adopted diverse approaches to crypto mining.

As of now, Russia is highly attractive for mining due to its abundant natural gas and hydropower resources. In August 2024, Putin signed a law legalizing crypto mining in Russia.

Under the legislation, entities and individual entrepreneurs registered with the Russian Ministry of Digital Development are allowed to engage in cryptocurrency mining. Private individuals can also mine without registration, provided their energy consumption does not exceed government-set limits

In the US, states like Texas and Wyoming have implemented favorable regulations for crypto mining, positioning themselves as crypto-friendly jurisdictions. Renewable energy sources like wind and solar are increasingly utilized to power mining operations.

In contrast, China, once the world’s leading mining hub, imposed a blanket ban on cryptocurrency mining in 2021.

However, according to CryptoQuant CEO Ki Young Ju, it still accounts for 55% of Bitcoin’s global hashrate through underground operations.

#Bitcoin hashrate dominance is shifting to U.S. mining companies.

Chinese mining pools operate 55% of the network, while U.S. pools manage 40%.

U.S. pools primarily cater to institutional miners in America, while Chinese pools support relatively smaller miners in Asia. pic.twitter.com/kepopLWBSD

— Ki Young Ju (@ki_young_ju) September 23, 2024

There’s ongoing speculation that China might ease restrictions or establish a Bitcoin strategic reserve in 2025 to align with global trends.

El Salvador is fully embracing Bitcoin as a legal tender and promotes mining using geothermal energy from volcanoes.

However, the International Monetary Fund (IMF) has requested El Salvador to stop Bitcoin mining activities as part of the $1.4 billion loan agreement.