ISLAMABAD: Pakistan is working on special electricity tariffs to attract crypto mining and blockchain-based data centres, aiming to utilise surplus power at marginal costs while fostering growth in the digital asset industry.

Sources told Dawn that the power division had been consulting various stakeholders to develop an attractive electricity tariff for emerging industries and sectors without involving any subsidy that could help absorb surplus power and somehow reduce capacity payments.

Some estimates suggest that bitcoin miners at present spend up to 60-70 per cent of their total earnings on electricity costs. This places Pakistan in an attractive position with surplus electricity but will require more focus on its stable supply.

Globally, bitcoin mining is a highly energy-intensive process. Estimates suggest that it consumes over 130 terawatt-hours (TWh) of electricity annually — more than the entire power consumption of countries like Argentina or the Netherlands.

Power division consulting stakeholders to develop attractive power tariff for emerging industries

Due to this high demand, several countries have introduced specific electricity tariffs for crypto mining or have cracked........

© Dawn Business