Pakistan plans new rules to bring cryptocurrency under formal regulation 

ISLAMABAD: The federal government has formally established the Pakistan Crypto Council to develop a regulatory and operational framework for cryptocurrency in the country, the National Assembly was informed on Friday. The move comes under the directives of Prime Minister Shehbaz Sharif. 

Federal Minister for Parliamentary Affairs Tariq Fazal Chaudhry told lawmakers that the council’s purpose is not to promote or discourage cryptocurrency, but to ensure its integration into a structured legal system to maintain transparency and prevent potential misuse. 

Ensuring security and international compliance 

“Cryptocurrency is a relatively new phenomenon in Pakistan. Rather than allowing ad-hoc practices, the government is working to regulate crypto-related activities through formal and lawful mechanisms,” Chaudhry said. He added that the framework would help curb risks of illegal transactions and financial crimes. 

Currently, there is no evidence that digital currencies are being used for hawala or other illicit financial activities. “Crypto transactions have not yet penetrated the formal financial system in any significant way. However, the framework is being introduced to mitigate any potential misuse in the future,” he said. 

A special assistant to the prime minister has been tasked with overseeing the formulation of the cryptocurrency policy. Chaudhry said the policy will align with international standards and evolving technological requirements. He also highlighted government efforts to integrate innovations like Artificial Intelligence into governance and economic systems. 

Commitment to Islamic financial principles and economic growth 

Chaudhry assured lawmakers that all financial reforms, including those related to cryptocurrency, will comply with Islamic principles, recalling the precedent set by interest-free Islamic banking. Lawmakers were invited to submit suggestions to help shape the regulatory process. 

On the broader economy, Chaudhry said the government is focused on achieving macroeconomic stability and attracting investment. He pointed to a rise in foreign remittances, the highest in two years, as a positive sign.  

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“Despite prevailing economic challenges, capital inflows into Pakistan are on the rise, and international investors continue to express confidence in the country’s economy,” he said.  

Efforts to enhance the ease of doing business and provide a secure investment climate are ongoing, with relevant economic data to be made available for parliamentary review. 

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