Pakistan’s Minister for Parliamentary Affairs, Dr. Tariq Fazal Chaudhry, informed the National Assembly that the government has no evidence suggesting cryptocurrency is being used for illegal or financial crimes in the country. He emphasized that Islamabad’s goal is regulation not prohibition or promotion of digital assets through a structured legal and institutional framework.
Speaking during the Question Hour on Friday, Dr. Fazal said the government has established the Pakistan Crypto Council (PCC) on the direction of the prime minister to develop a regulatory and operational framework for cryptocurrency. The move aims to ensure transparency, prevent misuse, and integrate emerging technologies such as artificial intelligence and digital innovation into Pakistan’s economic and governance systems.
He clarified that cryptocurrency remains a relatively new concept in Pakistan, and the government wants to manage it through institutional mechanisms rather than ad hoc administrative steps. “We are working to ensure all crypto-related activities are formal, transparent, and legal,” the minister said, adding that the policy under preparation will address future risks through proper oversight.
Responding to a query by Mirza Ikhtiar Baig, the minister said the Pakistan Crypto Council has been created to guide the regulatory process, though he declined to share details about its composition, suggesting a separate question be submitted.
Meanwhile, the Ministry of Finance, in its written reply, revealed that the government had issued the Virtual Assets Ordinance 2025 on July 9, 2025, which established the Pakistan Virtual Assets Regulatory Authority (PVARA) an independent body responsible for licensing, monitoring, and supervising Virtual Asset Service Providers (VASPs). Once PVARA begins licensing, the legality and operations of virtual asset entities can be fully assessed.
The ministry noted that the impact on foreign reserves will depend on how licensed entities use virtual assets. It confirmed that the State Bank of Pakistan (SBP) will coordinate with PVARA to evaluate these activities’ implications on reserves and financial stability.
However, PPP MNA Sehar Kamran raised serious concerns about what she called “contradictions and ambiguities” in the government’s crypto policy. She accused the authorities of sending mixed signals promoting crypto initiatives such as the Bitcoin reserve, allocation of 2,000MW for mining, AI projects, and digital currency pilot schemes, while regulators like the SBP still refuse to recognize cryptocurrencies.
Kamran warned that this lack of clarity could threaten national security and financial transparency, urging the government to adopt a clear, comprehensive, and transparent crypto policy that safeguards economic integrity and the future of youth while aligning with global financial norms.
Dr. Fazal Chaudhry, however, reiterated that all financial reforms will follow Islamic principles, comparing current skepticism to the early resistance faced by interest-free Islamic banking in Pakistan. He invited parliamentarians to share their suggestions to strengthen the crypto framework, assuring that every recommendation would be reviewed carefully.
Beyond cryptocurrency, the minister also highlighted positive economic indicators, noting a 27.2% rise in foreign direct investment (FDI) to $4.03 billion last fiscal year and a record surge in workers’ remittances, the highest in two years. He said these trends show growing investor confidence despite economic challenges.
He concluded that the government’s priority remains economic stability, investor facilitation, and a predictable policy environment, saying, “Our goal is to strengthen the investment climate, build investor confidence, and promote sustainable growth through innovation and regulations
