3 min read
Islamabad: Pakistan is taking a decisive step toward legalizing cryptocurrency to establish a regulatory framework aimed at attracting international investment. The government’s efforts mark a significant shift in the country’s stance on digital assets, as it seeks to position itself as a leader in blockchain-powered finance.
Bilal bin Saqib, CEO of the Pakistan Crypto Council and Chief Advisor to the Finance Minister for cryptocurrency regulation, emphasized the country’s commitment to fostering a pro-business environment for digital assets. Speaking to Bloomberg TV, he stated, “Pakistan is done sitting on the sidelines. We want to attract international investment because Pakistan is a low-cost, high-growth market with 60% of the population under 30. We have a Web3 native workforce ready to build.”
The initiative follows the formation of a national crypto council by Prime Minister Shehbaz Sharif, underscoring Pakistan’s intent to embrace blockchain technology and the digital economy. The government seeks to introduce regulatory standards to support cryptocurrency investment by managing the existing US dollar crypto transactions and reaching between 15 to 20 million Pakistani crypto holders.
Saqib highlighted the global trend of crypto adoption, pointing to the United States as a key driver of change. “Trump is making crypto a national priority, and every country, including Pakistan, will have to follow suit,” he remarked, referencing recent executive orders by former US President Donald Trump to integrate digital assets into the national economy.
Startups can operate in a controlled and compliant environment through the government-established regulatory sandboxes as part of their crypto strategy. Operation costs in Pakistan remain low which will encourage Bitcoin companies to locate there instead of other well-established crypto hubs like Dubai and Singapore.
“We are working to provide regulatory Sandboxes, which will essentially create fast-track systems for crypto startups to operate in a controlled, compliant environment,” Saqib stated. The Federal Revenue Board of Pakistan is working with UAE regulators to understand their regulation model and collaboratively works with Nigerian and Turkish teams to build best practices for digital asset governance techniques.
The government wants to develop a “balanced pro-growth tax structure” which will welcome both foreign capital investment and maintain sustainable crypto activity taxation revenue. The introduction of bitcoin within Pakistan’s financial systems has possibilities for the fintech sector to undergo exponential growth according to Saqib.
If Pakistan successfully legalizes cryptocurrency, it will be the first South Asian nation to do so, putting it ahead of other regional governments, including India. Bhutan participated in Bitcoin mining, although it has never recognized bitcoin as an official currency.
By implementing this economic change, the government aims to attract international investment while also harnessing blockchain technology. Pakistan creates regulatory rules for digital finance operations in order to promote itself as a major player in the global digital finance markets.
With the world’s largest economies prioritizing digital assets, Saqib believes Pakistan must act swiftly to remain competitive. “That means that the largest economy in the world is treating it like a valuable national asset, similar to how it stockpiles gold or oil for economic security and strength. Trump is making crypto a national priority, and every country including Pakistan will have to follow suit or we will be at the risk of being left behind,” he warned.
As Pakistan progresses toward formal cryptocurrency regulation, the world will be closely watching how the country navigates this transformative economic shift.
