Pakistan’s Cryptocurrency Initiative Faces Major Setback
Pakistan’s efforts to establish a strategic bitcoin reserve have hit a significant roadblock, as both the State Bank of Pakistan and the Ministry of Finance reaffirmed that cryptocurrency transactions remain illegal in the country. Despite recent announcements about exploring digital asset policies, senior officials clarified that the existing ban on cryptocurrencies is still in effect. This contradiction has raised concerns among lawmakers, who question the government’s approach to encouraging investment in a market that is officially prohibited.
Government’s Stance on Cryptocurrency
During a session of the National Assembly’s Standing Committee on Finance and Revenue, Finance Secretary Imdadullah Bosal emphasized that cryptocurrency transactions are unlawful under current regulations. He stated that while Prime Minister Shehbaz Sharif has initiated the formation of a Crypto Council to explore potential digital asset policies, the prohibition on cryptocurrencies remains firmly in place. Bosal noted that a legal framework could only be established if the government makes a formal decision to change the status of cryptocurrencies in Pakistan. He reiterated that, as it stands, cryptocurrencies are not recognized as legal tender in the country.
The committee members expressed confusion regarding the government’s contradictory messaging. Mirza Ikhtiar Baig, a member of the committee, raised concerns about the risks posed to citizens who are encouraged to invest in cryptocurrencies despite their illegal status. He warned that such investments could lead to severe consequences for individuals, highlighting the need for clarity and consistency in government policy.
Plans for a Strategic Bitcoin Reserve
The announcement of a government-supported Strategic Bitcoin Reserve has sparked interest, even as officials clarify the legal status of cryptocurrencies. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, revealed plans for this reserve during a presentation at the Bitcoin Vegas 2025 Conference. He described the initiative as “strategic,” aiming to align with the pro-cryptocurrency stance of former U.S. President Donald Trump. Saqib expressed gratitude towards the U.S. for inspiring Pakistan’s efforts in the cryptocurrency space.
Despite the ambitious plans, the State Bank of Pakistan has maintained its firm stance against cryptocurrencies. Sohail Jawad, the bank’s executive director, confirmed that cryptocurrencies were declared illegal in 2024 and that this position remains unchanged. He also mentioned that the Financial Monitoring Unit continues to refer cryptocurrency-related cases to law enforcement, underscoring the serious implications of engaging in such transactions.
Concerns Over Investment Risks
The conflicting messages from the government have raised alarms among financial experts and lawmakers alike. The National Assembly’s Standing Committee on Finance and Revenue is grappling with the implications of promoting cryptocurrency investments while simultaneously enforcing a ban. Members of the committee have voiced their concerns about the potential fallout for investors who may be misled by the government’s actions.
The situation has prompted calls for a more coherent policy regarding digital assets. Lawmakers are urging the government to clarify its position and provide a legal framework that would protect investors while also regulating the cryptocurrency market. The lack of clear guidelines leaves citizens vulnerable to legal repercussions, raising questions about the government’s responsibility in guiding public investment in emerging technologies.
As Pakistan navigates the complexities of cryptocurrency regulation, the need for a balanced approach that fosters innovation while ensuring legal compliance remains critical. The ongoing discussions within the National Assembly highlight the urgency of addressing these issues to create a stable environment for potential investors.
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