Surplus electricity to be used for crypto mining

The wave of crypto has taken Islamabad by storm as authorities have begun working on initiatives to boost blockchain-based data centres and crypto mining. According to credible reports, Pakistan is gearing up to direct surplus power in the national grid towards crypto mining to develop its infant crypto industry.

This electricity will be provided to entities running crypto operations at economical prices, allowing for the sector to witness growth. As per reports, the Power Division has discussed the revision of electricity tariffs for the country’s infant industries.

Relevant stakeholders have been approached to discuss these revisions, as the power division does not intend to offer subsidies to utilise the surplus power in the system. Moreover, authorities want to revise tariffs in such a manner that capacity payments fall considerably.

Crypto mining operations could significantly reduce the issues Pakistan’s power sector is facing – especially those pertaining to excess power. Data from verified reports reveals that Bitcoin miners dedicate a staggering 60-70 percent of total revenues to pay for the electricity bills that the operation incurs.

Given Pakistan’s power surplus, both crypto miners and the power sector could benefit from successful collaboration. However, the national grid may not be suitable for miners, given how such operations require a steady supply of power over extended periods.

Moreover, bitcoin mining at large is an extremely electricity-intensive operation. Reports place the annual electricity consumption of global mining operations at a staggering 130 terawatt-hours (TWH).

For perspective, the electricity consumption for overall mining operations is so large that it dwarfs even the power consumption of advanced economies – such as the Netherlands. Owing to its electricity-intensive nature, many countries have instated bans on Bitcoin mining to combat local power deficits and rising environmental issues.

In 2021, China officially cracked down on their domestic bitcoin mining industry by banning the activity altogether. However, with Pakistan embracing the crypto wave and the crackdown other countries have imposed on their cryptosystems, investments could pour in.

Chinese entities interested in mining could set up in Pakistan, bringing foreign direct investment (FDI) inflows into the country. This spells great news for cash-strapped Pakistan as FDI levels plummeted by 45 percent in February 2025.

As per reports, the power division remains committed to offering tariffs to ‘emerging’ sectors. However, many believe that crypto operations could fuel capital flight and boost corruption in the country. This is because it is not easy to monitor international money transfers – as the crypto space is highly decentralised and has few regulatory checks in place.