ISLAMABAD – Senate Standing Committee on Finance raised serious concerns about cryptocurrency, taxation, money laundering, and the role of customs in Pakistan, revealing that most cryptocurrency transactions are being conducted through informal channels like Hawal Hundi.
The committee chaired by Senator Saleem Mandviwala, discussed Virtual Assets Bill 2025 in detail. Secretary of Finance Imdadullah Bosal stated that Pakistan previously had no regulations for virtual assets, but the government is now working to introduce transparency and proper regulatory frameworks.
Senator Dilawar Khan highlighted heavy tax burden on citizens, suggesting that a uniform tax of 5% nationwide could increase revenue collection by 40% despite the lower rate.
Chairman Mandviwala revealed that Pakistan ranks eighth globally in cryptocurrency investments, with most transactions occurring through unofficial channels.
Senator Anusha Rahman raised concerns over extortion at 23 check posts from Quetta to Taftan, noting that better customs facilitation could prevent such incidents.
Senator Mohsin Aziz disclosed that cryptocurrencies are increasingly being used in kidnapping-for-ransom cases, with criminals now demanding digital currencies instead of cash, raising concerns about money laundering.
A consultant from Ministry of Law said the bill proposes the creation of an independent regulatory board. Meanwhile, the State Bank’s Deputy Governor said that while cryptocurrency remains in a legal gray area, it is not illegal, and Pakistani youth are adept at using these digital assets.
The committee stressed need for robust regulations to prevent misuse and ensure transparency in the emerging cryptocurrency market.
