Govt aims to boost digital economy but cryptocurrencies remain banned in Pakistan

Following the announcement by Minister of State Bilal Bin Saqib regarding the establishment of government-led Bitcoin reserves in Pakistan, the Ministry of Finance and the State Bank of Pakistan have stated that cryptocurrency remains banned in the country due to the absence of a legal framework.

At a meeting of the National Assembly’s Standing Committee on Finance and Revenue, Finance Secretary Imdadullah Bosal admitted that the Prime Minister of Pakistan, Shehbaz Sharif formed a crypto council under the Finance Minister’s chairmanship through an executive order to explore asset policy, but it remains banned under SBP and SECP regulations. 

“There will be a legal framework only when the government formally takes a decision, but the current legal status is that crypto is not a legal tender in Pakistan,” Mr Bosal said, conceding that no parliamentary backing exists for cryptocurrency use.

Read: In a first, Pakistan establishes its govt-led strategic Bitcoin reserve

However, the statement made by the Ministry of Finance made the situation ambiguous for the meeting attendees, prompting committee member Mirza Ikhtiar Baig to inquire if the cryptocurrency remained illegal, then why people were being encouraged to invest, warning of the serious consequences of the action.

Similarly, it made Mohammad Moneen wonder if the government is dealing with the subject instead of SBP, pointing out that despite the government calling out the cryptocurrency illegal, the CEO of Pakistan Crypto Council (PCC) had been holding meetings with the global elite leaders. 

Sohail Jawad, an executive director at the SBP, stated that the central bank issued a directive in 2024 declaring the status of Bitcoin and other cryptocurrencies as illegal, a position that remains unchanged.

Read: Bilal bin Saqib appointed as SAPM on blockchain, crypto

He mentioned that the Financial Monitoring Unit (FMU) continues to refer cases related to cryptocurrency to law enforcement agencies for further investigation. 

He noted that a national working group on digital currency was formed to provide recommendations to the Pakistan Crypto Council. 

He pointed out that El Salvador is the only country in the world that has legalised cryptocurrency, and even that country is re-evaluating its choice.