NA Question-Hour: Cryptocurrency not being used for illegal purposes, says minister

ISLAMABAD: Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhry informed the National Assembly on Friday the government has established the Pakistan Crypto Council under the direction of the prime minister to formulate a regulatory and operational framework for cryptocurrency in the country.

He was responding to the question asked by Mirza Ikhtiar Baig during the question hour in the National Assembly, who asked how many countries have legalised crypto operations and whether they are in line with FATF guidelines regarding money laundering;(b) legal status of Pakistan Crypto Council (PCC) and appointment of its Chief Executive Officer (CEO).

However, the minister did not talk about the PCC composition and asked the questioner to submit a fresh question in this regard.

To various supplementary questions, Dr Tariq Fazal said the government has no intention either to promote or to ban cryptocurrency, adding the government aims at bringing it under a structured legal and institutional framework to ensure transparency and prevent misuse.

He said cryptocurrency remains a relatively new concept in Pakistan, and the government intends to regulate it through institutional mechanisms rather than temporary administrative steps. “We are working to ensure that all crypto-related activities are organised in a formal, transparent, and legal manner,” he said, adding that the framework under preparation will help prevent illegal transactions and financial irregularities.

The minister clarified that, so far, there is no evidence of cryptocurrency being used for illegal purposes or financial crimes in Pakistan, nor are such transactions common in the domestic financial system.

However, he said, the framework aims to address potential future risks by establishing proper oversight.

Dr Tariq Fazal said that emerging technologies such as artificial intelligence (AI) and digital innovation are increasingly becoming part of governance and business models worldwide, and Pakistan is aligning itself with these global trends.

He informed the House that uninterrupted power supply and institutional support were being ensured for IT-related installations and technology-based sectors.

He added that the prime minister’s special assistant has been assigned to supervise the development of the cryptocurrency policy to ensure compliance with international standards and technological requirements.

The minister further assured lawmakers that all financial reforms would be aligned with Islamic principles, recalling the initial apprehensions that accompanied the introduction of interest-free Islamic banking in Pakistan. He invited parliamentarians to share their inputs and observations to strengthen the ongoing regulatory process, assuring that all suggestions would be reviewed by the relevant authorities. While in a written reply with regard to the legal status of the Cyrpto Council, the Ministry of Finance stated that the government issued Virtual Assets Ordinance 2025 on July 9, 2025, which mandates the Pakistan Virtual Assets Regulatory Authority (PVARA) to operate as an independent regulator for licencing, monitoring and supervising Virtual Asset Service Providers (VASP).

Once the PVARA starts licencing, the entities in question, and legality or otherwise of their operations can be commented upon.

The impact assessment of Virtual Asset operations on foreign reserves of Pakistan will depend on the actual use case being offered by licenced entities in Pakistan.

Under the recently promulgated ‘Virtual Assets Ordinance 2025’, a separate regulatory authority namely Pakistan Virtual Assets Regulatory Authority (PVARA) has been established and entrusted with the licencing and regulating entities intending to offer services and products in the virtual assets domain.

Once PVARA starts the licencing of prospective entities, SBP would be in a better position to assess the impact of these offerings on the reserves. The SBP will continue to work with PVARA to analyse the impact of virtual assets activities in Pakistan, including implications on the reserves. While in a supplementary question, Pakistan People’s Party (PPP) MNA Sehar Kamran on Friday voiced serious concern over what she described as “deep contradictions and ambiguities” in the government’s cryptocurrency policies, warning that the lack of clarity could pose risks to financial transparency and national security. She said the government appeared to be simultaneously promoting and denying cryptocurrency. “On one hand, it is taking major steps to encourage crypto — including the formation of the Pakistan Crypto Council, plans for a strategic Bitcoin reserve, allocation of 2,000 megawatts for mining and AI projects, the launch of a digital currency pilot project, and adoption initiatives for banks and forex institutions,” she said. “All these moves clearly show that the government is actively promoting crypto.”

However, Ms Sehar Kamran pointed out that the State Bank of Pakistan and other financial regulators continue to refuse recognition of cryptocurrencies, even as reports link their use to serious crimes such as hawala, money laundering, drug trafficking, kidnapping for ransom, and terror financing.

Expressing disappointment, she said the minister of state for finance’s response was “highly unsatisfactory.” “He claimed the government is not promoting but merely regulating crypto, and that there is no evidence of illegal use — a statement that contradicts ground realities and expert warnings,” she said.

She urged the government to develop a clear, comprehensive, and transparent policy on cryptocurrency, taking into account national security, financial integrity, and the future of young generations, to ensure Pakistan aligns with global financial norms and regulations.

While responding to a question by MNA Ali Muhammad Khan regarding GDP growth and economic performance, Dr Tariq Fazal said the government remained committed to ensuring economic stability and attracting local and foreign investment.

He referred to encouraging economic indicators discussed in recent cabinet meetings, noting a record increase in remittances last month — the highest in two years. Despite economic challenges, he said, capital inflows were rising and foreign investors continued to show confidence in Pakistan’s economy.

Minister for Parliamentary Affairs Tariq Fazal Chaudhary highlighted that the government was taking policy-driven measures to improve the investment climate.

He told the House that foreign direct investment (FDI) surged by 27.2 percent during the last fiscal year to reach $4.03 billion, while workers’ remittances also posted a record increase in recent months.

Dr Tariq Fazal added that the government was taking all possible measures to facilitate investors, improve ease of doing business, and provide a secure and predictable environment for investment. He said comprehensive data and charts on financial inflows and outflows were being compiled for detailed policy review. “The government’s goal,” he said, “is to strengthen the investment climate, build investor confidence, and promote a business-friendly environment conducive to sustainable growth.”

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