The federal government has officially established the Pakistan Crypto Council under the directives of Shehbaz Sharif, aiming to build a structured regulatory and operational framework for cryptocurrency in the country. This development, shared in the National Assembly on Friday, represents a key step toward formalising oversight of digital assets and ensuring greater financial transparency.
During the question hour session, Tariq Fazal Chaudhry, Federal Minister for Parliamentary Affairs, clarified that the government is not promoting or discouraging the use of cryptocurrency. Instead, the focus is on bringing the sector within a legal and transparent framework to prevent illicit financial activities. He noted that cryptocurrency remains a relatively new phenomenon in Pakistan and requires a structured legal mechanism to avoid unregulated practices.
The minister explained that the new regulatory approach will help the government mitigate potential misuse of cryptocurrencies, such as money laundering or illegal transactions. He added that, currently, there is no concrete evidence suggesting that digital currencies are being used for hawala or other illegal financial flows within Pakistan. While the penetration of crypto transactions in the formal financial system remains limited, the government sees regulation as a proactive measure rather than a reactive one.
He further stated that a special assistant to the prime minister has been assigned to oversee the formulation of cryptocurrency policies. The framework will align with international standards to ensure that Pakistan remains in step with global regulatory developments and evolving technological innovations in the digital asset space.
Chaudhry highlighted that this initiative is part of a broader vision to integrate emerging technologies into Pakistan’s governance and financial systems. He underscored the government’s commitment to embracing global digital transformations and enhancing the country’s capacity to adapt. As part of this push, the state is working to provide stable energy and infrastructure to support technology-driven sectors, particularly those related to financial technology and IT installations.
In his remarks, the minister also reaffirmed that all financial reforms, including those related to cryptocurrency regulation, will remain consistent with Islamic financial principles. He referred to the successful adoption of interest-free Islamic banking as an example of integrating innovation while respecting cultural and religious frameworks. Lawmakers were encouraged to contribute policy suggestions to shape the new regulatory structure, with the government assuring that all recommendations will be reviewed thoroughly.
Responding to a question from Ali Muhammad Khan regarding GDP growth and the country’s economic direction, the minister noted that macroeconomic stability remains a top priority. He highlighted positive indicators, including a recent increase in foreign remittances, the highest in two years. According to him, this reflects growing confidence in Pakistan’s economy from both domestic and international investors.
He emphasised that the government is committed to improving the ease of doing business, strengthening investor confidence, and creating a secure investment environment. Updated economic data and reports on capital inflows will be made available for parliamentary review to ensure transparency in decision-making.
The establishment of the Pakistan Crypto Council marks a critical milestone in the country’s digital finance journey. It represents an effort to balance innovation with regulation, paving the way for safer, more transparent cryptocurrency use in Pakistan’s evolving digital economy.
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