Pakistan Mulls Special Electricity Tariffs For Crypto Mining

Pakistan is working towards becoming a haven for crypto mining. One way it plans to achieve this feat is to introduce special electricity tariffs that will leverage the country’s excess energy generation capacity. 

Transforming Pakistan’s Liabilities to Assets

Local news outlet Dawn reported that Pakistan’s Power Division has begun to consult with several stakeholders, seeking advice and collaborations to facilitate the creation of attractive electricity rates for these industries. Power Minister Awais Leghari was recently in contact with Bilal Bin Saqib, the newly formed Pakistan Crypto Council (PCC) chief executive.

Their discussions centered around opportunities for global crypto miners to leverage Pakistan’s excess electricity. 

After this meeting, the PCC’s inaugural meeting, chaired by Finance Minister Muhammad Aurangzeb, was held. Key financial regulators graced this event, giving Saqib the perfect avenue to present the vision for “leveraging Pakistan’s surplus electricity for Bitcoin mining.”

The goal is to implement these tariffs without introducing subsidies. Rather, the initiative will utilize the long-untapped excess power production while lowering capacity payments. In other words, this is a way of transforming Pakistan’s liabilities into assets.

Crypto Miners Spend Largely on Electricity

Generally, the major percentage of crypto miners’ expenditures goes into electricity, considering that mining requires a lot of energy. 

Most crypto miners spend as much as 60-70% of their earnings on electricity costs to run their rigs. Pakistan’s new electricity tariff plan will likely appeal to this category of people. 

In the long run, analysts see the possibility that crypto mining will become more profitable for miners. A few days ago, JPMorgan analysts, led by managing director Nikolaos Panigirtzoglou, hinted that publicly listed Bitcoin (BTC) miners would continue to gain a larger share of the network’s hashrate if they cut costs.

Illegal Crypto Mining Activities Around the World

There is a global concern about energy theft in crypto mining. In February, BitcoinLinux reported a fire explosion in a house in Kuala Lumpur, Malaysia, which led to the discovery of an illegal Bitcoin mining operation. Upon investigation, it was discovered that the fire was caused by damaged electrical wiring.

A miner had stolen electricity and machines to run his mining operation.

Also, illegal mining activities in Las Vegas saw a man charged with defrauding over 400 investors out of $24 million through an AI-powered cryptocurrency mining scheme that falsely guaranteed high returns and financial security. 

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