The Pakistani government decided to bring a friendly environment for the Bitcoin mining companies. Some crypto influencers claimed that Pakistan will fail just like Kazakhstan.
Summary
- PCC proposed to use surplus electricity for Bitcoin mining.
- The majority of the government officials supported the proposal.
- Experts believe such decisions will result in better outcomes for crypto regulation in the country.
- Crypto influencers claim, Pakistan will fail just like Kazakhstan.
Pakistan is a developing country with 254.4 million population. After the COVID-19 pandemic, the country’s economy has been badly facing challenges. The country’s sovereign fiat currency faced high inflation and a large fiscal deficit, and the debt in this country increased badly. To date, the country is strongly dependent on the agricultural and textile sectors.
On 22 March 2025, Local Media reported that the government of Pakistan is looking to find out a possibility to use the country’s surplus electricity for Bitcoin mining operations.
With this new plan, the country has a plan to reduce the financial burden faced by the power sector.
The financial minister of the country started his consultation on this matter with stakeholders to create a special type of tariff for new sectors, which also includes Bitcoin mining operations.
PCC Involvement in Shaping Friendly Bitcoin Mining Environment
As per some authentic data reports, Bitcoin mining companies spend nearly 60% to 70% part of their earnings on electricity. The government of Pakistan found an opportunity in this situation.
According to the officials of the Ministry of Energy, the country has surplus power, and it should be used for new sectors, including the crypto sector.
The idea of attracting Bitcoin & crypto mining companies came after the sudden surge in Bitcoin mining activities in the country following the establishment of the Pakistan Cryptocurrency Council (PCC), a new organisation to create a regulatory framework for the crypto space in the jurisdiction of Pakistan.
Amid the increasing interest in crypto mining, Power Minister Awais Leghari and PCC CEO Bilal Bin Saqib held a meeting to discuss the use of the country’s extra electricity to attract international Bitcoin mining companies.
This was the first meeting with PCC, which was chaired by Finance Minister Muhammad Aurangzeb and attended by senior officials including the State Bank Governor Jameel Ahmad and the heads of the Securities and Exchange Commission and other relevant ministries.
Reportedly Saqib proposed the idea of attracting Bitcoin miners to use the country’s surplus energy. For this, he also asserted the need for regulatory clarity so that such companies can run their operations under clear rules & laws without facing any regulatory hurdles.
Aurangzeb showed his full support for the proposal & said that it will be a new chapter for digital assets, which will ultimately improve the country’s economy.
Will Pakistan Fail, Just Like Kazakhstan?
Pakistan and Kazakhstan have shared historic ties since ancient times through the Silk Route. Because of such ties, Kazakhstan and Central Asia have a strong influence on modern Pakistan.
Following the Crypto blanket ban in China, Kazakhstan invited crypto mining companies to set up business, under fresh & friendly rules & laws.
At the time, Kazakhstan succeeded in attracting huge numbers of crypto companies but failed to provide a sustainable environment.
For example, major electricity cuts & sometimes internet outages badly impacted the revenue of Bitcoin mining companies. Because of the downfall in revenue & loss in the mining business, these companies shifted to other jurisdictions.
Some crypto influencers noted that Pakistan is following Kazakhstan’s footsteps to attract Bitcoin miners and this strategy will fail just like Kazakhstan.
Read also: U.S. Senator Urges Nation: Dump Gold, Buy 1 Million Bitcoin
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