Pakistan is taking a closer look at Bitcoin mining, viewing it as a potential way to not only put its surplus electricity to good use but also to cultivate a well-regulated digital asset sector.

According to a recent report from Dawn, Pakistani authorities are planning to roll out appealing electricity tariffs specifically tailored for crypto mining and blockchain data centers. The goal? To encourage these energy-intensive industries to tap into the nation’s excess power.

These tariffs are designed to be market-driven, steering clear of government subsidies. The expectation is that this move will help the government reduce the payments currently made to power producers for energy that goes unused.

Data from Statista suggests that Bitcoin’s global electricity consumption was substantial, ranging between 137 and 175 TWh just between January 2024 and February 2025. Mining operations often find that a significant chunk of their revenue, anywhere from 60-70%, goes towards covering electricity expenses.

Given its intense energy demands, crypto mining emerges as an industry that could actually help ease the financial strain caused by Pakistan’s overcapacity in power generation.

In a recent development, Awais Leghari, the Federal Minister of Energy, engaged in discussions with Bilal Bin Saqib, Chief Executive of the Pakistan Crypto Council (PCC). Their conversation centered on the opportunities for international crypto miners to leverage Pakistan’s readily available surplus electricity.

Just today, the council convened its inaugural meeting, with Finance Minister Muhammad Aurangzeb presiding as chair.

As Saqib shared in a Bloomberg interview earlier this week, Pakistan is proactively building a regulatory framework for digital assets. This is all part of a broader strategy to attract global investment and nurture the growth of the local crypto scene.

The PCC is at the forefront of this initiative, striving to seamlessly integrate blockchain and crypto technologies into Pakistan’s existing financial infrastructure. Saqib believes that Trump’s supportive stance on crypto could act as a major push for broader global crypto adoption.

Diverse approaches to crypto mining

When it comes to crypto mining, countries around the world are taking vastly different paths.

Currently, Russia presents itself as a highly appealing location for mining, thanks to its wealth of natural gas and hydropower. Back in August 2024, Putin officially signed legislation legalizing crypto mining within Russia.

According to this new law, businesses and individual entrepreneurs who are registered with Russia’s Ministry of Digital Development are now permitted to engage in cryptocurrency mining activities. Notably, individuals can also mine without registering, as long as their energy usage remains within the limits set by the government.

In the United States, states like Texas and Wyoming are actively creating attractive regulations for crypto mining, positioning themselves as havens for crypto businesses. Furthermore, there’s a growing trend of utilizing renewable energy sources, like wind and solar power, to fuel these energy-intensive mining operations.

On the other end of the spectrum, China, once the undisputed global leader in crypto mining, implemented a comprehensive ban on cryptocurrency mining back in 2021.

However, despite the ban, CryptoQuant CEO Ki Young Ju suggests that China still unofficially accounts for a significant 55% of Bitcoin’s global hashrate through operations that have moved underground.

#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 swirling around the possibility of China potentially easing up on these restrictions or even establishing a strategic Bitcoin reserve sometime in 2025, potentially in response to evolving global trends.

El Salvador, in a bold move, has fully embraced Bitcoin as legal tender and is actively encouraging mining activities, particularly leveraging geothermal energy from its volcanoes.

However, the International Monetary Fund (IMF) has stepped in, requesting El Salvador to halt its Bitcoin mining ventures as a condition tied to a substantial $1.4 billion loan agreement.

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