Pakistan’s chronic electricity shortages, marked by rolling blackouts and soaring tariffs, face an emerging threat from energy-intensive cryptocurrency mining. While digital currencies promise economic opportunities, their unchecked expansion risks deepening the nation’s power crisis, with severe consequences for households and industries.
The fundamental issue stems from cryptocurrency mining’s colossal energy appetite. Global Bitcoin mining alone consumes more annual electricity than entire nations like Argentina or Ukraine. In Pakistan—where power generation already fails to meet demand—illegal mining operations have been caught stealing electricity through unauthorised grid connections. These clandestine setups divert precious megawatts from the national supply, forcing utilities to impose longer blackouts on legitimate consumers while driving up per-unit costs through systemic losses.
Compounding the problem is Pakistan’s carbon-heavy energy mix. With over 60% of electricity generated from imported fossil fuels, expanded mining activity would spike CO₂ emissions precisely when climate change is amplifying heatwaves and glacier melt. Recent raids in KP and Punjab revealed mining rigs operating 24/7 while nearby hospitals relied on backup generators—a stark illustration of skewed energy priorities. The National Electric Power Regulatory Authority (NEPRA) estimates such thefts cost Rs. 50 billion annually, worsening the circular debt crisis.
Industrial productivity hangs in the balance. The textile sector—contributing 60% of exports—reports $300 million in annual losses from production delays caused by power instability. If mining drains more capacity, manufacturers may relocate to countries with stable energy supplies, triggering job losses. Meanwhile, urban households endure 10-hour daily outages, and rural communities face 14-16 hours without power—a humanitarian crisis that mining exacerbates.
Proponents argue regulated mining could attract investment, but Pakistan lacks the energy surplus for sustainable operations. Until the country achieves base-load power stability through renewable expansion and grid modernisation, cryptocurrency mining remains a luxury it cannot afford. The choice is clear: prioritise electricity for citizens and industries or risk economic paralysis in pursuit of digital gold.
MUHAMMAD SUHAIB,
Karachi.