Pakistan’s Finance Secretary has confirmed that cryptocurrency remains banned in the country and emphasized the urgent need for proper regulations to manage digital assets. He made the remarks during a meeting of the National Assembly’s Standing Committee on Finance held on May 29, 2025.
The session, chaired by Dr. Nafisa Shah, also saw MNA Sharmila Faruqi raise critical questions about how Pakistan plans to prevent money laundering through cryptocurrency. She also presented a bill calling for formal regulations for digital currencies, stating that Pakistan must move forward with a secure and structured approach.
Faruqi highlighted that cryptocurrency is a decentralized system, and Pakistan recently exited the Financial Action Task Force (FATF) grey list. She questioned the government on its strategy to control potential financial crimes through digital currencies in the absence of legal safeguards.
In response, the Finance Secretary informed the committee that initial work is underway within the Crypto Council. However, he stressed that a complete legal and regulatory framework is still required. He also reiterated that the State Bank of Pakistan has banned investments in crypto coins.
Officials from the State Bank briefed the committee on the formation of a National Working Group focused on digital currency. They shared that the Crypto Council has already received some initial recommendations, but legal infrastructure remains a key requirement for progress.
Moreover, State Bank representatives noted that El Salvador is currently the only country to have legalized cryptocurrency — and it is now reconsidering that decision. Meanwhile, the Finance Secretary also confirmed informally to journalists that the federal budget for the upcoming fiscal year will be presented on June 10, 2025, as planned.