ISLAMABAD
EHSAN BUKHARI
Government of Pakistan has reiterated its stance that cryptocurrency remains banned in the country, telling the National Assembly’s Standing Committee on Finance that comprehensive regulations are essential before any legalization can be considered.
The announcement came during a tense committee session where lawmakers voiced urgent concerns over money laundering, investor protection, and apparent contradictions in government policy regarding the burgeoning digital asset class.
The meeting, chaired by Dr. Nafisa Shah, saw PPP lawmaker Sharmila Faruqi take the lead in questioning the government’s preparedness. Presenting a bill calling for digital currency regulations, Faruqi highlighted the decentralized nature of crypto and Pakistan’s recent removal from the FATF grey list. “Cryptocurrency is decentralized… We need to be cautious and responsible,” she stated, pressing, “How will Pakistan protect itself from money laundering through crypto?”
Concerns over the current ambiguous situation were echoed by other committee members. Mirza Ikhtiar Baig confronted the Finance Secretary about the ongoing public investment in crypto despite the ban. “You say crypto is banned, but people are still investing in it… If it is later declared unacceptable, their money will be lost. At least issue a public statement that crypto is still undergoing legal review,” Baig urged.
Muhammad Mubeen pointed to inconsistencies, noting, “On one hand, crypto is illegal. On the other, electricity is being allocated for mining. The CEO of the Crypto Council, Bilal Bin Saqib, is meeting with high-profile people.” Shehram Tarakai added a stark warning about potential capital flight, predicting, “Soon, the government will be sitting with its head in its hands, wondering what went wrong,” if swift action isn’t taken.
In response, the Finance Secretary clarified the status of the Pakistan Crypto Council, stating it was formed under a Prime Ministerial executive order solely to explore regulatory frameworks and currently holds no official authority. He emphasized, “Any institution or law regarding crypto will only be established with Parliament’s approval.” He confirmed the State Bank of Pakistan has prohibited investment in crypto coins and reiterated the necessity of a “proper legal and regulatory framework” before any changes to the ban.
State Bank officials also briefed the committee, revealing the formation of a National Working Group on digital currencies. They confirmed that recommendations have been submitted to the Crypto Council and stressed the indispensable need for a legal framework. As a global reference, they noted that only El Salvador has legalized cryptocurrency, a decision that country is reportedly reconsidering.
The committee concluded by deciding to summon the Chairman and members of the Crypto Council for a briefing in a future meeting to further scrutinize the path forward.
Separately, in an informal discussion with journalists post-meeting, the Finance Secretary confirmed that the federal budget presentation remains on schedule for June 10th.
