ISLAMABAD, PAKISTAN— Finance Secretary Imdadullah Bosal confirmed on Thursday that the ban on cryptocurrency remains in effect across Pakistan, stressing the urgent need for proper regulations to address the growing interest in digital assets.

Speaking during a meeting of the National Assembly Standing Committee on Finance, Bosal reiterated the State Bank of Pakistan’s (SBP) longstanding position of not recognising cryptocurrencies as legal financial instruments. “Preliminary work is underway in the Crypto Council, but there is a need for proper regulations for cryptocurrency,” he said.

The SBP had issued a formal notice in 2022 warning the public against trading in digital currencies. Despite this, activity in the crypto space has persisted, prompting calls for clearer legal frameworks.

The debate was reignited during the committee session when Pakistan Peoples Party (PPP) MNA Sharmila Farooqi introduced a bill to regulate digital currencies. She pointed out that while Pakistan is transitioning toward digital finance, cryptocurrency remains unregulated and vulnerable to misuse. Highlighting Pakistan’s removal from the Financial Action Task Force (FATF) grey list in 2022, Farooqi questioned how the government intends to prevent money laundering through crypto.

“There are no regulations for cryptocurrency,” she said. “If we are moving towards digital currency, we must also decentralise and secure it.”

Committee members voiced a range of opinions. MNA Osama Ahmed noted that while trading platforms may be restricted, there is technically no ban on possessing cryptocurrency in Pakistan. He raised questions about the import of vehicles from Japan using crypto and asked whether the SBP had taken action. “Is the government supervising crypto mining?” he asked.

MNA Mirza Ikhtiar Baig raised concerns about the government’s mixed messaging. “Youth are investing in cryptocurrency,” he said. “The government should clarify its position — is it legal or not?”

Bosal responded that although the Pakistan Crypto Council (PCC) had been formed earlier this year with executive approval from the prime minister, it has yet to receive full legal status. “The Council must address the concerns raised in today’s meeting,” he noted.

SBP official Sohail Jawad added that a National Working Group on Digital Currency had been formed and proposals were being reviewed by the Crypto Council. “Only El Salvador has fully legalised cryptocurrency — and they are now reversing that decision,” he said, warning of the risks associated with legalising decentralised finance too quickly.

Adding a new dimension to the conversation, PCC Chief Executive Officer Bilal Bin Saqib announced earlier in the day the launch of Pakistan’s first government-led Strategic Bitcoin Reserve. During his keynote speech, he also unveiled a national bitcoin wallet, designed to hold digital assets already in state custody. Saqib emphasised that the reserve is not intended for sale or speculation but is instead a symbol of “sovereign belief in decentralised finance.”

He further revealed that the government has allocated 2,000 megawatts of surplus electricity in the first phase for bitcoin mining and AI data centres, inviting sovereign miners, tech companies, and clean energy partners to collaborate with Pakistan.

The move sparked concern among lawmakers. Baig questioned the decision to set electricity rates for crypto mining at 7–8 cents per unit, lower than the 9 cents demanded by domestic industries. “Why doesn’t the government offer the same rate to our industrial sector?” he asked. “Our exports could grow if industries received electricity at this rate.”

Farooqi also questioned the allocation of electricity, asking whether a thorough review was conducted before diverting 2,000 megawatts for crypto mining. “Pakistan is already facing load shedding,” she remarked. “How was this decision made?”

As the global conversation around cryptocurrencies gains momentum, Pakistan continues to navigate a complex path, caught between the opportunities of digital innovation and the risks of financial instability and regulatory gaps. While some countries like El Salvador have adopted cryptocurrency as legal tender, others, including Pakistan, India, and China, have taken a more cautious approach, neither fully legalising nor entirely banning its use.