Pakistan Aims to Attract Crypto Miners with Special Electricity Tariffs
Pakistan’s Surplus Power to Attract Crypto Miners
Pakistan is working on special electricity tariffs to draw crypto mining and blockchain-based data centers. The country goals to utilize surplus power at marginal costs while fostering growth within the digital asset industry.
Power Division Consulting Stakeholders
The power division is consulting various stakeholders to develop a beautiful electricity tariff for emerging industries and sectors without involving any subsidy that might help absorb surplus power and reduce capability payments.
Bitcoin Mining Energy Consumption
Globally, bitcoin mining is a highly energy-intensive process. Estimates suggest that it consumes over 130 terawatt-hours (TWh) of electricity annually, greater than the whole power consumption of nations like Argentina or the Netherlands.
Countries’ Approaches to Crypto Mining
China banned crypto mining in 2021, citing environmental concerns and power shortages. Iran offers subsidized electricity for mining but continuously shuts down operations during peak consumption periods. Kazakhstan initially embraced crypto mining but later imposed higher electricity tariffs and taxes as a consequence of rising energy shortages. El Salvador, the primary country to adopt bitcoin as legal tender, provides low-cost geothermal energy from volcanoes for mining.
Pakistan Crypto Council’s Vision
The Pakistan Crypto Council’s (PCC) chief executive Bilal Bin Saqib presented the concept of leveraging Pakistan’s surplus electricity for bitcoin mining at a recent meeting. The council’s inaugural meeting was presided over by Finance Minister Muhammad Aurangzeb and attended by State Bank Governor Jameel Ahmad, Securities and Exchange Commission of Pakistan Chairman Akif Saeed, and federal secretaries for the IT and law ministries.
Regulatory Clarity Needed
The meeting focused on Pakistan’s untapped potential within the crypto space, with a serious area of dialogue being the necessity for regulatory clarity to unlock the total potential of the sector. The finance minister underscored the critical role of the PCC in shaping Pakistan’s future within the digital asset space.
Conclusion
Pakistan’s efforts to draw crypto miners and develop a sturdy regulatory framework for the sector could lead on to significant growth opportunities. With its surplus power and low electricity costs, Pakistan is well-positioned to grow to be a hub for crypto mining and data centers. However, the country must prioritize regulatory clarity and ensure a well-defined framework to reap the advantages of this emerging industry.
