Pakistan Wants Bitcoin Mining but Remains One of the Least Cost-Effective and Unreliable Countries for It 

Key Takeaways

• Pakistan has allocated 2,000 megawatts of surplus electricity for Bitcoin mining.
• The country’s energy sector remains fragmented and poorly suited for industrial-scale mining.
• Competitive electricity pricing, regulatory clarity, and tax reform are critical to attracting global mining firms.

Once hostile to crypto, Pakistan is positioning itself as a potential contender in the global Bitcoin mining landscape.

In a major policy shift, the country has allocated 2,000 megawatts of surplus electricity for Bitcoin mining, signaling its intent to attract foreign investment and stake a claim in the growing digital asset economy.

But while the announcement made headlines, the ground reality tells a more complicated story.

Power Isn’t the Problem—Pricing Is

In May, Pakistan joined the ranks of Russia and Kazakhstan in officially legalizing Bitcoin mining.

On paper, the 2,000 MW surplus sounds like a competitive edge. In practice, it’s far less compelling due to prohibitive energy costs and fragile infrastructure.

Current industrial electricity rates in Pakistan range from Rs. 38.80 to Rs. 40.26 per kWh.

Commercial rates are even higher—between Rs. 62.47 and Rs. 71.06 per kWh, or roughly $0.22.

That’s nearly 10 times what miners pay in Texas, where industrial electricity can drop as low as 1.2 cents per kWh during off-peak hours.

Bitcoin mining in Pakistan is financially unviable for most global players at these rates.

Mining Cost Comparison: Pakistan vs. the World

Mining one Bitcoin in 2025 requires roughly 600,000 kWh using high-efficiency ASICs.

At Pakistan’s current commercial rates, that amounts to $132,000 per BTC, well above the global average.

To improve competitiveness, the government is proposing a subsidized tariff of $0.09/kWh, which would bring the cost closer to $54,000 per BTC.

It’s a step in the right direction, but still not enough to outcompete jurisdictions like China or Kuwait.

“The proposed $0.09 subsidized tariff barely makes us regionally competitive—it’s still more expensive than China, Kuwait, or Iran,” said Sana Zakir, an electrical engineer based in Pakistan.

“To attract serious mining investment, we need to bring that cost closer to $0.04 per unit, which is the benchmark in places like Texas during off-peak hours.”

“The bigger issue is that these subsidies may not be sustainable,” she added. “Pakistan’s agreements with the IMF explicitly discourage blanket energy subsidies. While the $0.09 rate aligns with what’s offered to the export industry and EV charging infrastructure, it’s still a delicate balancing act. If these rates aren’t market-based, they won’t last—and without them, the mining model falls apart.”

Weak Infrastructure, Uncertain Rules

Electricity pricing isn’t the only challenge.

Pakistan’s grid suffers from inconsistent service , regional disparities, and high transmission and distribution losses.

These inefficiencies pose major risks to mining operations that require uninterrupted power.

On top of that, mining hardware must be imported, and until recently, import duties made this an expensive proposition. Now, however, there may be signs of progress.

On May 25, the Ministry of Finance, working with the Pakistan Crypto Council (PCC), announced customs duty exemptions for Bitcoin mining equipment.

However, details remain uncertain.

What Needs to Change in Pakistan

Policymakers must act decisively if Pakistan wants to be taken seriously in the Bitcoin mining sector.

Key steps include:

• Subsidized electricity tariffs specifically designed for mining operations.
• Targeted infrastructure investment in high-potential regions with stable grids.
• Clear and favorable regulatory policies, including streamlined equipment importation and taxation.
• Commitment to renewable energy as a long-term power source to enhance sustainability and reduce costs.

Electricity can account for up to 70% of mining expenses. Without addressing that cost structure, no surplus capacity, however large, will be enough to entice global operators.

The Opportunity Is There—If Pakistan Can Deliver

Despite the challenges, Pakistan’s low labor costs and potential for solar and hydro power make it a region worth watching.

Renewable energy accounts for just 7% of the country’s power mix, but with the right incentives, that share could grow and become a cornerstone of Bitcoin mining in South Asia.

If Pakistan takes a proactive approach to pricing, infrastructure, and regulation, it has a chance to turn its untapped energy into a competitive digital asset strategy.

But for now, the opportunity remains just that—an opportunity, not a guarantee.