Islamabad:
The Senate Standing Committee on Funding on Wednesday raised serious concerns about cryptocurrency negotiations, taxation pressure, money laundering and the role of the customs authority as legislators discussed the proposed virtual assets Bill 2025.
Chairman of the Senator Saleem Mandviwalla heard the committee reveals that most crypto transactions in the country are carried out through the dog and hawala channels. Pakistan is now ranking eighth around the world with regard to citizens’ crypto investment, Mandviwalla revealed.
Financial Secretary Imdadullah Bosal admitted that Pakistan had no regulatory framework for virtual assets so far, but said the government introduced new rules to ensure transparency.
Senator Mohsin Aziz released a more alarming warning: Cryptocurrency was increasingly used for kidnapping-for-ransom cases in Pakistan. He said abductors demanded ransom in digital currency instead of cash, a trend that could intensify money laundering.
During the meeting, Senator Dilawar Khan criticized the complex tax regime and argued that several taxes crushed the public. He suggested that a uniform tax of 5% nationwide could increase collections by 40% despite the lower rate.
Senator Anusha Rahman expressed strong complaints about corruption in the customs and said that people were routinely extorted at 23 control points between Quetta and Taftan. “If the customs duty gave proper relief, such complaints would not arise,” she said.
A law consultant in the law informed the committee that the virtual assets Bill 2025 would create an independent supervisory board, while the state bank’s deputy stated that cryptocurrency is currently falling into a legal “gray area” – but not illegal. He added that Pakistani youth has shown a remarkable expertise in using digital currencies.
