A Senate committee was told on Wednesday that cryptocurrency is increasingly being used for ransom payments in Pakistan, with kidnappers no longer demanding cash.
Senator Mohsin Aziz revealed this during a meeting of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla, which reviewed the “Virtual Asset Bill 2025.”
Deputy Governor of the State Bank informed the panel that cryptocurrency is not illegal but exists in a “grey” area.
Mandviwalla questioned how crypto dealings could be considered grey when they were conducted through hawala and hundi, which are illegal. He also noted that Pakistanis ranked eighth globally in crypto investment, underscoring the bill’s importance.
Finance Secretary Imdadullah Bosal said there had been no regulation of virtual assets so far, and the government aimed to bring transparency through this bill.
He added that the legislation would also examine potential money laundering risks. A consultant from the Law Ministry said an independent board would be established under the bill, with board members required to have expertise in technology, finance and regulatory affairs.
Senator Dilawar Khan, during a separate discussion on taxation, criticised the existing system, saying multiple levies such as sales tax and super tax were stifling.
He argued that imposing a uniform 5% tax could boost overall revenues by 40%. He cautioned that economic improvement required avoiding risky policy experiments.
The committee also debated the role of customs. Mandviwalla objected to placing the Trade Development Authority of Pakistan (TDAP) under customs, while the finance secretary said there was a close link between the two bodies. Senator Anusha Rehman challenged the claim that customs facilitated traders, pointing out persistent complaints of 23 checkpoints between Quetta and Taftan.